2023-05-16 12:33:14
Hardware crypto wallet manufacturer Ledger is facing serious criticism for a new firmware update. The new update introduces a recovery feature (Recovery) that allows Ledger to back up seed terms. The feature comes as part of the 2.2.1 firmware update.
Ledger KYC registration is a major point of criticism
The function also came under fire because it requires user registration, which is contrary to the values of private data protection and anonymity held by many in the crypto community. Registration requires that users also submit a copy of their government-issued ID card.
Currently, this subscription service is only available for Ledger Nano X devices. The ID requirement for registration applies to users in the EU, UK, Canada and the US.
In the crypto community, this has caused serious displeasure as it defeats the purpose of a hardware wallet. Namely, that everyone keeps the seed phrases to themselves. They were particularly critical of the fact that Ledger had a history of having its users’ personal data stolen several times in the past, leading to a serious lack of trust on the part of users.
Data has been stolen from them several times
Perhaps the most significant criticism the hardware wallet maker has received is related to previous data thefts. In December 2020, 270,000 Ledger holders had their physical addresses stolen. The hacker shared this information for free on a forum.
Unsurprisingly, attackers then used this information to blackmail victims. The Ledger did not respond well to the incident either. The CEO said only that the company “deeply regrets this situation.” He tried to reassure users by emphasizing that there is no correlation between the data and the crypto assets stored in their wallets. However, the crypto community was very outraged by this serious information security incident.
The wallet manufacturer was also mocked for the “stylish” chain
However, Ledger has received criticism for other things in the past. Most recently, it was because it released its hardware wallet in the form of a “stylish” necklace. The chain is a Nano X OnChain arrived in a package. The crypto community grilled Ledger for releasing a product that so obviously attracts theft.
Users scoffed that the company was suggesting users carry their wallets everywhere and wear them around their necks all the time.
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