Crypto Users Force Ledger to Reconsider Key-Recovery Feature; Open Source Ahead

Hardware wallet provider Ledger has responded to backlash from the crypto community by postponing the release of its key recovery service, Ledger Recover. The decision, announced by CEO Pascal Gauthier, comes following widespread concerns about the service’s security and privacy.

Ledger Recover, initially presented as a mechanism to help users restore lost or forgotten seed phrases, required users to store encrypted backups with a trio of custodians. This raised eyebrows in the crypto community, as Ledger had previously insisted that wallet private keys would always remain on the device.

Members of the cryptocurrency world, incensed by the proposition of sharing seed phrases, lashed out on social platforms. Fears around potential custodian hacks, data leaks from KYC procedures, and law enforcement data acquisition were amplified by Ledger’s non-disclosure of the Recover feature’s source code.

Acknowledging these criticisms, Gauthier assured that the release of the Ledger Recover would be held back until the code is released. The firm also vowed to open-source more of its operating system, including the contentious feature. Furthermore, a Twitter Spaces session will be hosted to discuss the issues at hand.

The firm’s CEO maintained that a key recovery feature is essential to attract crypto novices who may find self-custody daunting. As the crypto community awaits the open-source code, Ledger’s proposed solution continues to provoke dialogue on the delicate balance between ease of use and security.