Ledger CEO Paul Gauthier claims that this is “not a real concern,” but private seed phrases of users may be given to governments if their custodians were required to do so.
The private seed phrases of customers who choose to use Ledger’s Recover update may eventually be disclosed to governments if legally required, according to Pascal Gauthier, CEO of Ledger. Users’ worries about their bitcoin assets’ security and privacy have increased in response to this news.
Hardware wallets and the most recent firmware upgrade from Ledger have recently drawn controversy. There are concerns regarding the ramifications for user privacy and control over their own assets following the launch of the Recover update, which gives users the option to store their seed phrases with third-party businesses.
Exploring the Recover Upgrade
The Recover upgrade, according to Ledger, is an optional firmware update made to give customers a way to backup their seed phrases. As part of the upgrade, the seed phrase is split into smaller, encrypted pieces known as “shards,” which are then kept by Coincover, Ledger, and a separate backup service provider.
Recover’s release has generated a discussion about how convenience and security are traded off in the bitcoin world. While some users would value the extra security and simplicity of recovering a lost seed phrase, others worry about possible security flaws and the risk of having their privacy compromised by enlisting third parties in the storing process.
It’s important to note that although some users, like the anonymous cryptocurrency pundit 0xFoobar on Twitter, view the change as an egregious invasion of privacy, Ledger reps argue that these worries are mainly unfounded.
Ledger revealed that the original seed word itself still doesn’t leave the device, despite the numerous criticisms leveled at the business on social media.
“If you don’t want to use Ledger Recover, nothing changes for you.”
When asked if there were any plans to open source their firmware code—something that rival cold wallet provider Grid Plus is currently moving toward—Ledger responded that it was not possible due to legal restrictions imposed by the chip manufacturer on the “secure element” chip.