“Technically speaking it is and always has been possible to write firmware that facilitates key extraction. You have always trusted Ledger not to deploy such firmware whether you knew it or not,” Ledger said on Twitter.
Crypto wallet manufacturer Ledger faced criticism after their support team acknowledged on Twitter that they have the capability to extract users’ keys, causing further damage to their public image.
While responding to questions about their new wallet recovery service, Ledger Support made some strange statements on Twitter that might have increased worries among users. They implied that they had the ability to compromise their customers’ assets if they chose to, although they haven’t done so thus far.
In simpler terms, Ledger stated that from a technical standpoint, it has always been possible to create firmware that allows for key extraction. However, they emphasized that users have always trusted Ledger not to develop or use such firmware, whether they were aware of it or not.
It is crucial to realize that when using a hardware wallet, you must trust the developer behind it to create and maintain a secure device for storing your assets.
Doesn’t answer the question. This one too. Answer please: https://t.co/7h2ertV6Po
— AbsoluteGnosis (@AbsoluteGnosis) May 17, 2023
The crypto community expressed concern over Ledger’s “Recover” service this week, as it seemed to contradict the company’s commitment to privacy and security. The service, which is optional, enables users to back up their seed recovery phrase (a random string of words) by encrypting it in pieces with third parties.
Users are worried that dividing the key among third parties could make it less secure, essentially defeating the main purpose of using a hardware wallet instead of other storage methods.
Ledger has stated that this type of backup option is actually favored by many users because the risk of losing assets due to misplacing a random set of words could discourage people from investing in cryptocurrency.
CEO Pascal Gauthier expressed during a Twitter Space that this is the preferred choice for future customers and the method through which the next hundreds of millions of people will join the crypto space.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
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