Popular self-hosted hardware wallet Ledger has released a feature called Recover, by which the seed phrase can be reset. This has caused uneasiness among laser users. Its problems are no less grave.

Security Breach

Crypto lives in the blockchain; the wallet is only the door. A key or seed phrase is required to access it. The ability to reset the seed phrase makes it more inconvenient, as the wallet seed is the only way to access crypto or import and export wallets.

Leaning on MiCA

The recently passed MiCA law by the European Union, which mandates digital asset companies to collect and share information on crypto-related transactions with tax authorities, has also been applied to self-hosted wallets. Ledger Wallet released the recover feature at the same time, fueling suspicions that Ledger was attempting to collect its users' information.

Not your keys, not your coins

Up until recently, hardware wallets, also known as cold wallets, were thought to be the most secure. Ledger has changed this theory, stated that it may be possible to replace the users' keys by recovering the "inconvenience" that they are not in their wallet holders.