Ledger, the famous crypto hardware wallet, has announced the launch of its much-criticised Ledger Recover service. Even now, it seems that the crypto community is not so happy.
Ledger: Crypto hardware wallet launches recovery service, but criticism remains
Renowned crypto hardware wallet manufacturer, Ledger, has announced the official launch of its Ledger Recover service, which allows users to back up their recovered seed sets.
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
The new Ledger Recover service has been provided by blockchain protection company Coincover, and is currently only available on the Ledger Nano X. Later on, the company plans to extend this service to the other Ledger-signed devices as well.
In this regard, Ledger CEO Pascal Gauthier posted a series of tweets, one of which specifically stated the following:
“Let’s be clear: too many people have lost their digital assets because they’ve lost their Secret Recovery Phrase. This risk stops people from using crypto, and certainly from using self-custody.”
Although the new service is optional, the crypto community does not seem to be happy with Ledger Recover.
Ledger Recover: crypto community criticises new service launched by hardware wallet maker
It was May 2023 when Ledger publicly announced its plans to develop this newly launched service.
Even then, however, Ledger Recover had literally pissed off the crypto community on Social X, formerly Twitter.
Basically, the idea that the “Recover” feature allows you to back up your seed phrase so that you can retrieve it in the event of loss may help novice users, but it may also compromise the security of devices and the privacy of users.
Indeed, many users have taken to social media to express their unfiltered disapproval of the new service, which they feel goes against the ideals of self-custody.
In addition, many people have pointed out that there may be a backdoor in the firmware (software installed in the chips of Ledger devices), allowing the parent company and possibly third parties to access customers’ wallets at any time.
The uproar, which involved 13,000 X users, caused Ledger to postpone the launch of the service, but apparently not until today.
A 12% reduction in staff
Recently, French company Ledger hit the headlines with the news that it had reduced its workforce by -12%, citing new and far-reaching economic challenges.
In terms of numbers, Ledger has reportedly decided to make 88 people redundant, out of a total workforce of 734, according to LinkedIn.
In this regard, Gauthier is said to have explained that this decision is based on ensuring the sustainability of the company, given the difficult economic environment in 2022, coupled with the collapse of FTX and Voyager Digital.