1 year ago

Learn to build your own Bitcoin vault:
https://www.trader.university/courses...
Use the discount code YT99 to get the best price.

In this video, I discuss the recently launched Ledger Recover service and what it implies about security problems with the Ledger hardware wallet.

I have always recommended against using Ledger hardware wallets, especially in a single sig setup. The fact that the firmware was and remains closed-source was always a deal-breaker for me. Ledger's many customer data leaks also showed a remarkable disregard for user security and privacy.

Now we learn that the new firmware (which is still closed-source) will have the ability to export encrypted shards of the recovery seed. Here's the big problem in my opinion: if the new Ledger firmware has the ability to split the recovery seed into 3 encrypted shards and send them out from the hardware wallet-- this is not only a feature, but also a potential vulnerability that can be exploited by an attacker.

What happens when a government goes to these 3 custodians and forces them to reconstruct your private key from the 3 shards, after you have KYC'd yourself?

Stick to Bitcoin-only hardware wallets that have open source and viewable firmware, like the Blockstream Jade and ColdCard hardware wallets.

I'm not being paid or compensated in any way by any of these companies that I mention in this video.

Not investment advice! Consult a financial advisor.

Ledger data leaks:
https://cointelegraph.com/news/ledger...
https://thedefiant.io/ledger-suffers-...

Don't Use Trezor Coinjoin (Or Trezor):

• Don't Use Trezor ...

Trezor's Betrayal (Your Questions Answered):

• Trezor's Betrayal...

Ledger Launches Distributed, KYC-Based, Cloud Seed Recovery Service Then Quickly Deletes It:
https://www.nobsbitcoin.com/ledger-to...

Ledger Recover is "optional":
https://twitter.com/Ledger/status/165...

Shamir's secret sharing:
https://en.wikipedia.org/wiki/Shamir%...

My favorite 2 hardware wallets:
https://blockstream.com/jade/
https://coldcard.com/

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Bitcoin
#ledger
#hardwarewallet

Disclaimer
Neither Bitcoin University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.

Loading comments...