- After updating, the seed phrase can go online
- Ledger Recover also requires KYC
The Ledger company, which develops hardware cryptocurrency storage wallets, has introduced a new feature called Ledger Recover that allows you to recover the secret phrase.
This update immediately caused concern among users, they believe it is another potential attack vector.
Ledger Recover is an ID subscription service that allows you to get a secret recovery phrase.. It applies to Ledger Nano X hardware wallets and will launch in the 2.2.1 firmware release.
Ledger customers have raised serious objections to the feature on Reddit. They say it requires storing a secret phrase online and tying it to a passport or national ID.
“A disaster just waiting to happen. The requirement to upload ID makes the offer even more unattractive from a security standpoint,” users wrote on Reddit.
One user suggested that subscribing to the new feature was unnecessary, making it impractical.
However, the response noted that the mere existence of Ledger Recover could mean that your device and phrase could be compromised, regardless of ID.
It is estimated that about $545 million in BTC was lost in 2022 due to lost passwords or a recovery phrase error, indicating a real need to address this problem.