Ledger Introduces Delayed Recovery Phrase Backup Feature After 5 Months
Ledger, a prominent hardware wallet manufacturer, has announced the launch of its controversial private key recovery service, named Ledger Recover. This new feature was initially teased back in May 2023 but faced significant delays due to a divided community. Ledger Recover is a subscription-based option catering to the needs of backing up recovery phrases. The service encrypts the seed phrase into three separate segments and stores them with three distinct companies.
At first glance, this might appear as a commendable feature aimed at decentralizing wallet control, but the crypto community has unleashed a barrage of criticism. Users have expressed concerns that Ledger Recover may compromise their private keys, potentially aiding cyberattacks and data breaches. Many argue that Ledger may have had a “backdoor” all along.
Ledger Recover, provided by Coincover, is launching today! https://t.co/JRl4cLn2tQ
What does this mean, how does the service work, and who is it for?
Scroll down to learn more and sign up👇 pic.twitter.com/Vhdearb5o7
— Ledger (@Ledger) October 24, 2023
To access this service, users are required to register and pay a monthly fee of $9.99. Ledger insists that its solution is safer than centralized exchange wallets, as the company does not take custody of users’ funds.
As is often the case, Ledger’s actions have once again attracted fierce backlash from the crypto community. Some are even calling for a boycott of the Recovery service.
Many have cited previous comments from Eric Larchevêque, a co-founder of Ledger, who has expressed concerns that governments could compel the three companies storing seed phrases to hand over information and grant government access to users’ funds. Furthermore, it should be noted that Larchevêque no longer holds a managerial position within Ledger and is now just an ordinary shareholder. In another development, Ledger has recently laid off 12% of its workforce, despite having raised substantial capital in the past.
This new feature’s launch raises important questions about the balance between convenience and security in the crypto space. While Ledger claims that Ledger Recover enhances user safety, it remains to be seen how the crypto community will react in the coming days and whether users will embrace or shun this controversial service.
The unveiling of Ledger Recover signifies a significant step for Ledger, but it remains a highly contentious one, sparking an intense debate within the cryptocurrency community. The true impact and long-term viability of this service will likely be determined by the community’s response and future developments in the crypto industry.
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