Enhancing Security: Ledger’s Counter to Criticism with ID-Based Seed Phrase Recovery in Crypto Hardware Wallets
Ledger, the crypto hardware wallet firm, has introduced a new feature called “Ledger Recover,” which encrypts and splits a customer’s private key into three fragments stored separately by different parties using hardware security modules. This approach enhances security by leveraging tamper-resistant devices for cryptographic processes. To recover the seed phrase, users must undergo a rigorous ID verification process, after which the encrypted shards are sent directly to their Ledger Nano device.
However, some experts express concerns about this method. Mudit Gupta, the chief information security officer at Polygon Labs, highlights the potential risks associated with relying on ID verification, emphasizing that it is not a foolproof security measure. Changpeng Zhao, Binance’s CEO, questions the departure from the principle of keys never leaving the device. In response, Pascal Gauthier, Ledger’s CEO and chairman, defends the company’s approach, clarifying that they do not possess control over users’ devices or perform automated updates without consent. He assures users that only they can access and operate their Ledger devices.
Clever Robot News Desk 19th May 2023