Users criticize the upgrade of the Ledger crypto wallet
According to the community, it poses a security threat to the seed phrases of devices
16.05.2023 - 16:00
777
2 min
0
Cryptocurrency hardware wallet manufacturer Ledger has released a highly controversial update that has led to some users abandoning the platform. The update, which allegedly exposes seed phrases to the internet, has been met with alarm and dissatisfaction in the crypto community.
The contentious update offers an opt-in "recovery services" feature that can potentially expose seed phrases, the unique combination of words that gives users access to their cryptocurrency wallets. The concern is that this feature could make users' funds less secure than if they were stored on hot wallets like MetaMask.
Users on online forums like Reddit have expressed their disappointment and frustration with the update. One user noted, "Leger, it was nice while it lasted...But it's game over." The sentiment was echoed by others who now plan to purchase new wallets and transfer their crypto assets.
In response to the criticism, Ledger has clarified that the device sends encrypted shards of users' seed phrases to different companies only if they decide to use the recovery service. Users can still choose to back up their seed phrases themselves. However, this explanation has done little to alleviate the concerns of those who believe that the device should not have the ability to leak data to the internet in the first place.
The backlash comes after Ledger suffered a significant data breach in 2020, which resulted in the leak of customer information, including names, email addresses and phone numbers. The incident led to an increase in phishing emails targeting Ledger users and further damaged the company's reputation.
As more users abandon Ledger due to the controversial update, the company's credibility and market position are at risk. It remains to be seen how Ledger will address these concerns and regain the trust of its user base. For now, however, many in the crypto community are questioning the security of their assets and looking for alternative cold storage solutions.
This material is taken from the website https://u.today.
Useful material?
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024