‘There Is No Backdoor,’ Ledger Says in Response to Recover Reactions

Ledger released a new update, Ledger Recover, which includes ID verification

article-image

Andriy R/Shutterstock modified by Blockworks

share

Ledger’s newest Nano X update allows users to subscribe to a recovery tool that encrypts the users’ seed phrase and sends it to different custodians to reconstruct the seed after going through ID verification. 

However, Ledger customers are less than pleased by the news. 

Mudit Gupta, Polygon Labs’ chief information security officer, warned users not to enable the feature, calling it a “horrendous idea.”

Though Gupta did not take issue with the breakup of the key — he praised it, stating that “I may or may not be doing that personally as well.”

Gupta’s concern stems from the ID verification and the key access given to the contacts who are chosen by a user to store key parts, as it could open a door for identity theft.

Loading Tweet..

Gupta wasn’t the only person concerned about the update. 

Loading Tweet..
Loading Tweet..

In a video on Twitter, Ledger Chief Technology Officer Charles Guillemet said that “there is no backdoor for anyone, neither us, a provider or even a very gifted hacker to access it.”

“Back door would mean that we control all ledger devices and could run automated updates for example…That’s not the case. Will never be the case. Only you can use functions on your Ledger. No one else can enter your pin code and press those buttons,” CEO Pascal Gauthier also said.

The Recover feature is an opt-in subscription and is not enabled by default.

“Ledger Recover is an optional subscription for users who want a backup of their Secret Recovery Phrase. You don’t have to use it, and can continue managing your recovery phrase yourself if that’s why you bought a Ledger,” Ledger tweeted. 

Loading Tweet..

“The device sends encrypted shards of your seed to different companies if you decide to use the service. You can of course still choose to [back it up] yourself,” Ledger’s co-founder said on Reddit.

Ledger claims that “self-custody remains and will always be at the core principle of Ledger.” 

Loading Tweet..

Wired, in February, clarified that the three recovery custodians would be Ledger, Coincover – a crypto custody firm – and EscrowTech – a code escrow company.

The concern around Ledger’s update comes a few years after the company was targeted by a cyberattack in the summer of 2020 which led to personal information of 270,000 customers being leaked. 

In response to the announcement, some Twitter users suggested that Ledger make Ledger Recover a totally separate product. 

Loading Tweet..

Ledger did not immediately respond to a request for comment.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago

article-image

The final Bitcoin halving, where the mining reward becomes smaller than one satoshi, is expected to occur in 2140

article-image

The Department of Justice and Commodity Futures Trading Commission announced back-to-back lawsuits against KuCoin Tuesday

article-image

Judge Failla found that Coinbase didn’t operate as an unregistered broker in offering its wallet service