- Co-founder of Ledger, Éric Larchevêque, has admitted that governments can access users’ funds through Ledger’s Recover service.
- The disclosure may impact Ledger’s valuation, potentially affecting its standing as a billion-dollar company.
- Users who have not utilized the Ledger Recovery Service are not susceptible to access through a subpoena.
In a surprising revelation, the co-founder and former CEO of Ledger Éric Larchevêque, the renowned cryptocurrency wallet provider, has recently admitted that governments can now access users’ funds through the company’s Ledger Recover service.
This development, which allows governments to subpoena private keys and potentially gain control over users’ digital assets, has sent shockwaves through the crypto community and raised significant concerns over user privacy and security.
Ledger co-founder and former CEO admits that governments can subpoena access to your funds when using the Ledger Recover service ? pic.twitter.com/FmRwzuYvAi
— OKHotshot (@NFTherder) May 20, 2023
The admission by the co-founder has sparked widespread discussions among cryptocurrency enthusiasts and industry experts alike. Moreover, this revelation is anticipated to have profound implications for Ledger’s valuation, potentially impacting its standing as a billion-dollar company.
With the disclosure of this update, the company’s estimated valuation of $1.41 billion may undergo a substantial adjustment.
However, it is crucial to note that the current firmware state of Ledger devices offers a glimmer of hope for users who have yet to utilize the Ledger Recovery Service. Without this service, private keys cannot be accessed through a subpoena. This distinction reassures individuals who have opted not to avail themselves of the Ledger Recover feature.
Ledger’s introduction of the Ledger Recovery feature has sparked criticism from cryptocurrency industry experts. This feature, aimed at providing users with additional protection for their secret recovery phrase, has recently faced scrutiny.
Users can now subscribe to Ledger Recover, an innovative feature that enables individuals to obtain a backup of their recovery phrase. The introduction of this feature has been met with mixed reactions within the crypto community.
While some users appreciate its added security and convenience, others have expressed concerns about potential vulnerabilities and privacy compromise.