Ledger’s introduction of Ledger Recover faced significant opposition within the crypto community. Co-founder Éric Larchevêque acknowledged the PR challenges but emphasized they were not technical.
Ledger Recover is an OTA firmware update that enables users to store backup copies of their seed phrases with third-party entities. Users used to the hardware wallet’s secure cryptocurrency storage option were concerned about this departure from Ledger’s reputation as an unreliable company.
Éric Larchevêque stated that “some amount of trust must be placed into Ledger to use their product. If you don’t trust Ledger, meaning you treat your HW manufacturer as an adversary, that can’t work at all.”
He dismissed the suggestion of having two different firmware versions to address backdoor concerns, stating it wouldn’t make a difference and expressing personal disappointment.
The firmware update is not compatible with Ledger’s Nano S, their most affordable hardware wallet, due to memory limitations. In response to Ledger’s controversial update, competitor GridPlus capitalized on the situation by announcing their intention to open-source their firmware in Q3 2023, aiming to enhance transparency.
Also Read: Hardware Wallet Makers Offer Discounts Amid Ledger Outrage
