Hardware Wallet Manufacturer Ledger Faces Backlash Over New Feature
A recent service offered by Ledger Wallet has sparked controversy among the crypto community. The service allows users to recover their lost or forgotten recovery phrases, which are essential for accessing their crypto assets. However, some users have raised concerns about the security and privacy implications of this service.
Ledger Wallet claims that the service is safe and secure, as the recovery phrase is held in an encrypted form and split up for storage by multiple parties. The service also requires users to verify their identity before proceeding with the recovery process. Ledger Wallet says that the service is intended to help users who have no other way of accessing their funds.
However, some crypto experts and enthusiasts have criticized the service, arguing that it undermines the core principle of self-custody and decentralization. They claim that the service exposes users to potential risks of hacking, phishing, or social engineering attacks. They also warn that the service could create a false sense of security among users, who might become careless with their recovery phrases. Some users have suggested that Ledger Wallet should instead educate users on how to properly store and backup their recovery phrases.