Ledger’s Controversial Firmware Update and the Community’s Backlash

In a recent move that has sparked intense debate within the cryptocurrency community, leading hardware wallet manufacturer, Ledger, has introduced a controversial firmware update, version 2.2.1. This update includes a new recovery feature called “Recover,” which allows Ledger to back up seed phrases. However, this development has raised concerns and garnered criticism, as it appears to compromise the fundamental purpose of a hardware wallet – ensuring the secure and private storage of seed phrases.

The Controversy Surrounding Ledger’s Firmware Update

The introduction of the “Recover” feature in Ledger’s firmware update has ignited a storm of criticism within the crypto community. Hardware wallets are designed to safeguard seed phrases, which are essential cryptographic keys that ensure the security of cryptocurrencies. Consequently, the inclusion of a feature that grants Ledger “access” to these seed phrases has alarmed many users.

Adding fuel to the fire is the controversial requirement for Know Your Customer (KYC) registration, which accompanies the firmware update. This mandatory registration compels users to submit a photograph of a government-issued identity card, a move that clashes with the privacy-centric principles deeply ingrained in the cryptocurrency community. This requirement is applicable to users from the European Union, the United Kingdom, Canada, and the United States, and has further intensified the backlash against Ledger.

Seed Phrase Infographic

Past Breaches Impacting Ledger’s Reputation

The vehement criticism surrounding Ledger’s new firmware update is amplified by the company’s history of data security issues. Ledger has experienced several security breaches in the past, leaving a lasting impact on users’ trust and confidence in the company.

One notable incident occurred in December 2020, when the physical addresses of 270,000 Ledger owners were stolen due to a significant security lapse that had occurred in July of the same year. The stolen data was subsequently shared on a forum, leading to a targeted extortion campaign against the affected individuals.

While Ledger expressed remorse for the breach and assured users that the compromised data was not linked to their wallet funds, the incident severely undermined the community’s faith in the company’s ability to protect sensitive information.

CZ tweet commenting on the Ledger firmware update (Twitter)

Past Controversies and Current Criticisms

Ledger has faced previous controversies surrounding its decision-making, further contributing to the current wave of criticism. One such instance was the release of a “stylish” necklace for their cold wallet, as part of the Nano X OnChain bundle. The community widely criticized the necklace, considering it an unnecessary accessory that could potentially attract thieves.

Ledger’s suggestion that users wear their cold wallets outside and around their necks was met with harsh disapproval. Despite Ledger’s reassurances that the necklace did not provide full access to users’ wealth, these claims did little to assuage the community’s concerns.


Ledger’s introduction of the controversial firmware update, along with the associated Know Your Customer registration requirement, has created a significant backlash within the cryptocurrency community. The update’s perceived compromise of the core purpose of a hardware wallet, coupled with Ledger’s history of data breaches, has eroded trust in the company. Moreover, past controversies surrounding the decision-making process have further fueled the community’s criticisms. As Ledger faces this wave of discontent, it remains to be seen how the company will address these concerns and regain the confidence of its user base.

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    1. I believe if you do not agree with the firmware update you can opt out by simply not updating your ledger when the update is rolled out. My thoughts is this probably has come from regulatory pressures rather than the whim of ledger. But not a big fan

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