Ledger dropped another bombshellâthis time with an "optional" firmware update that backs up your seed phrase with third parties. Wait, what? The company that built its reputation on "secure, self-custody" now wants to split, encrypt, and store your keys with external custodians. For a fee, of course.
Hereâs the problem:
- "Not your keys, not your crypto" was the mantra Ledger users trusted. Now, theyâre blurring the line between self-custody and custodial services.
- Opt-in today, mandatory tomorrow? Once the backdoor exists, whoâs to say regulators wonât push for broader adoption?
- Security risks? Even if encrypted, any system that allows key extraction is a potential attack vector.
The irony? Ledgerâs CEO once said, âThe wallet cannot extract your seed.â Now, their firmware can. Oops!
This isnât just about an optional featureâitâs about trust. If a hardware wallet company can pivot this hard on self-custody, whatâs next?
Time to ask: Is Ledger still the gold standard, or a cautionary tale? đ§