Do You Think Ledger Wallet Is The Best Choice?
People use hardware wallets to secure the cryptocurrency since it gives a higher level of security. The private never leaves the device, but the new update of hardware wallet manufacturer Ledger is concerning.
Ledget gets backlash from users and the crypto community for the new feature of Ledger Recover. Ledger users will be able to recover the seed phrase verifying their ID. This is a subscription-based service which raises a big concern.
To get Ledger Recover service, users have to go through KYC. In the KYC process, a passport or national identity card is required. Now it is available in Ledge Nano X. If you are from the EU, the United Kindom, Canada, and the U.S., you can get Ledger Recover service. Looks like they will add more countries in the future.
The whole purpose of using a hardware wallet is to get the best security and safety of your crypto assets. If your private leaves from your device due to getting some fancy recovery feature, will it attract users to use the ledger wallet?
Even though Ledger assures that this recovery service is optional that will not be enabled automatically by any firewall update, users are seriously concerned about Ledget's move. In case bad actors manage to take advantage of any vulnerability to get the seed phrase of the ledger hardware wallet that is stored to provide this service, people may lose their crypto assets.
It is not that security breaches never occurred in Ledger. In 2020, due to security breaches, more than 270,000 Ledger owners' physical addresses and personal information were leaked. You can guess what could happen because of that. Users can be targeted for email and SMS phishing attacks and it can go further. luckily, it did not affect the users' private keys at that time.
After the collapse of FTX, ledger sales increased. People become more aware of securing their cryptocurrency and prefer to use a hardware wallet. But does Ledger intend to kill its core business with this service?
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Reference: 1.
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I have heard that people mention that regulations are the reason why they are doing so but I don't think it's an issue at all. A hardware wallet is just a way to store crypto and the government can't touch other people's crypto.
I don't know why they are doing it, maybe it could be regulations or some other unknown reasons. That's the move to destroy their own business. People will shift to using other hardware wallets.