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Users are scared by Ledger’s new phrase recovery feature

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Users are scared by Ledger’s new phrase recovery feature


Clients voice worries that the Record Recuperate highlight is another potential assault vector — putting away recuperation expressions and ID on the web.

Users of Ledger are concerned about a new feature that has been added.

The secret recovery phrase can be retrieved through the ID-based subscription service Ledger Recover. It applies to Record Nano X equipment wallets and will carry out under firmware discharge 2.2.1.

Up to $545 million in Bitcoin (BTC) was assessed to be lost in 2022 because of lost passwords or slip-ups with the recuperation expression — showing a genuine need to resolve the issue.

Notwithstanding, Record clients have serious areas of strength for voiced to the component as it requires online capacity of the mysterious recuperation expression and relationship with a visa or public ID card.



Ledger users say no

A Reddit post on the new Record Recuperate highlight marked it “a debacle in the works.”

The Over powered summed up the contentions against the element by bringing up the risks of sharing seed phrases on the web — referring to Record’s 2020 information break.

“Again, I’m in disbelief about this. Apart from the risks that they’re hacked again, apart from it flying in the face of never sharing your seed, and never storing it online, it opens the door to a whole new level of crypto scammers!”

Most pundits communicated a comparative feeling, with the most upvoted remark adding that the prerequisite to transfer an ID makes the recommendation much more unpalatable according to a security viewpoint.

“Yeah, that’s gonna be a no from me, dog. Have to send a picture of your ID as well? Hard nope.”

This is a non-event because one user stated that the new feature’s subscription is optional. Ledger Recover’s existence, on the other hand, “means that your device and seed could be compromised… ID or not,” was mentioned in response.







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Data breach

Ledger’s systems were hacked in July 2020, resulting in the loss of customer information such as names, phone numbers, email addresses, and, in some instances, home addresses.

By December 2020, the firm reported that the data was spilled on a programmer gathering called RaidForums — empowering anybody to get to the data.

Customers of the Ledger said they were threatened after the data were uploaded. For instance, one Redditor got an instant message requesting 0.05 BTC in 48 hours or be killed. Another person shared an email in which they requested $500 in Bitcoin or else they would be subjected to home invasion and torture.

“If not, I might show up with my friends when you least expect and we would find how to break you and get your wallet seed.”

Users of Ledger were still furious about the way the company handled its data, despite the general consensus that such messages were merely empty threats meant to frighten compliance. In light of this, uploading ID for the recovery phrase feature is a significant undertaking.

Pascal Gauthier, CEO of Ledger, issued an apology to users and expressed sympathy for the perilous threats that were received.


“In Ledger’s name, we very deeply regret this situation. We are aware that many of you have been targeted by e-mail and SMS phishing campaigns and that it’s clearly a nuisance. I know this breach is disappointing at best and infuriating at worst.”

Cryptocurrency, as an emerging sector, presents several inefficiencies and pain points. However, as things stand, being your own bank requires you to take responsibility for your recovery phrases.



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