Did This Crypto CEO Just Kill His Company With One Quote?
Ledger CEO Confirms Government Access to Private Keys Through Ledger Recover Feature
In a recent chat with Ledger CEO Pascal Gauthier, he confirmed what many crypto enthusiasts already suspected – that the government could get access to clients’ private keys through the Ledger Recover feature in certain cases. But don’t worry, if we are to believe the CEO, Gauthier clarified that these subpoenas are exceedingly rare and not for everyone. Whether that is true or not may be irrelevant, as many believe Ledger just condemned themselves to die… ooh spooky!
What is Ledger Recover?
As you may know, Ledger is a top cold wallet provider, offering users offline storage for private keys of various cryptocurrencies, including Bitcoin and Ethereum. These private keys are like secret passwords that allow you to confirm your ownership of your digital coins.
The Recover feature, which has sparked some controversy in the crypto world, allows users to split their 24-word recovery phrases into three encrypted shards and store them in different places, including an approved crypto custodian. To use this feature, users must undergo a Know-Your-Customer procedure and provide personal information.
Can the Government Access Private Coins without Authorization?
Some members of the crypto community are worried that this feature could create a backdoor for the government to access people’s private coins without proper authorization. However, Gauthier emphasized that Ledger’s wallets do not have any backdoors, and the Recover feature only comes into play if a subpoena is issued. While that may be true today, what’s to stop Ledger from pushing a firmware granting more access in “special circumstances”? And who determines what those special circumstances are? You see where this is going, don’t you?
The Benefits of Ledger’s Cold Wallets
While some crypto holders are concerned about this development, it’s worth noting that Ledger’s Recover feature is entirely optional and can be a lifesaver for those who may misplace their private keys. Ultimately, it’s up to each individual user to decide whether or not to use this feature. I’m really trying to play devil’s advocate here. Oh who am I kidding?
Ledger’s cold wallets were considered more secure than hot wallets like MetaMask and exchange wallets connected to the internet, making them an ideal choice for storing a significant amount of cryptocurrency — or so we thought. The company remains one of the biggest cold wallet providers, and its hardware wallets are trusted by many crypto enthusiasts, at least until the word spreads.
Social Media Reacted Just About How You’d Expect
Ledger? Ledger who??
Never heard of it … dead to me
— Steve B (@Broubaby) May 22, 2023
Imagine thinking this is a good idea. How they landed on this escapes me completely.
— ThinkingEmoji.eth 🦇🔊🐢 (@thinkingethmoji) May 22, 2023
The recent interview with Gauthier has raised concerns about the security of Ledger’s wallets and the protection of users’ private coins. It remains to be seen how this controversy will affect the company’s reputation in the long run, but it’s clear that many in the crypto community are skeptical about the government’s potential access to private keys through the Ledger Recover feature.
Our opinion? Ledger is now terminal — make your peace and say your goodbyes.
What’s your opinion?