2023-05-18 23:32:31
LEDGER COLD STORAGE WARNING:
Ledger has recently launched its "Recover" subscription service that lets users back up their Secret Recovery Phrase so they can be recovered if ever lost.
Ledger Recovery encrypts your seed in 3 shards and sends them to three different entities including Ledger, who can reconstruct it after ID verification. Thus requiring you to KYC that a ledger & its holdings are yours.
Hardware wallets like Ledger have always been considered the safest option, as offline devices are resistant to hackers and any other third parties attacks.
In my opinion this update clearly challenges that notion. Subscribers to the new Ledger Recover service are trading full control over their assets for an additional layer of security.
What if I don’t sign up to Ledger Recover? Well, the it’s not the subscription that matters, it’s the ability for Ledger to be able to access your Private Keys/Seed Phrases, when they shouldn’t be able to do so.
Their latest update does exactly that, in other words, irrespective of whether you sign up or not, if your device is updated (which they can later force) your keys won’t be only yours anymore.
In the last 24 hours the EU have passed regulation for mandatory KYC and identification of anyone who owns, holds, sends or receives Crypto payments. In the UK last week, regulation is being put forward to be able to seize crypto off of exchanges (with Ledger now becoming more like a hot wallet, they can do the same). We already know the US will go above and beyond their scope to in force control on crypto.
This update can potentially allow Ledger to conduct a full KYC recovery in the future, enabling third parties like governments to force withdrawals from users' funds or pause them.
What now? Personally, I will be purchasing a few Trezor’s, I only have two at the moment.
Trezor is Open Source and has vowed to keep it that way.
BUY A TREZOR HERE: https://affil.trezor.io/aff_c?offer_id=133&aff_id=33132&source=wzrd
Do not buy from any unofficial site.
395 viewsC, 20:32