Government may require companies storing passwords from cryptocurrencies connected to LedgerRecover to disclose this information. Crypto Upvotes expert review
Ledger CEO Pascal Gauthier admitted that authorities could gain access to the private keys of users of hardware cryptocurrencies. And that will be connected to the new Ledger Recover service. On the What Bitcoin Did podcast, Gauthier noted that this could only happen through the courts, so it’s unlikely.
The LedgerRecover service is a voluntary feature that allows users to split a secret phrase (seed-phrase, or private wallet key) into three pieces. And send them to three third-party companies for storage.
If the secret phrase is lost, it can be recovered. At the same time, by combining these three fragments on the Ledger device and passing identification. Ledger Recover costs $9.99 a month.
The new service has sparked a wave of criticism – users were outraged by the fact that not only the owner can have access to the data on a hardware device.
Ledger shareholder and former CEO Eric Larchevec said. That governments could demand access to user funds stored on Ledger devices that subscribe to the new service. Now users are concerned. And that their funds could be blocked by the authorities if they use the service.
These comments have raised questions for Ledger users. But Ledger CEO Pascal Gauthier said such a scenario is unlikely.
According to Gauthier, it is not worrisome because governments only issue such subpoenas for serious reasons. And for example, in connection with events related to terrorism or drugs. The head of the company noted that “the average person doesn’t get a criminal court summons every day”.
Ledger postponed update due to scandal
Ledger postponed the launch of LedgerRecover, a scandalous password recovery service, due to criticism. In a letter to users, Pascal Gauthier, head of the hardware cryptocurrency wallet maker, said. That Ledger won’t introduce the new feature before publishing its open source code.
Ledger does not release all of its product codes to the public. But, according to Gauthier, the company has now learned a lesson from its “unintentional mistake in communicating” with the audience. And it will be publishing operating system and tool codes on an expedited basis.
“We’ve decided to accelerate the data discovery roadmap! We will open up as much Ledger operating system code as possible, starting with the core components of the OS, and LedgerRecover. Which will not be released until this work is completed,” he wrote.
Code openness won’t affect the security of the device or improve it in any way, the company promises. But it will make the information transparent to users. And experts will be able to verify that malicious codes are not present in the devices’ software.