Ledger, one of the earliest hardware wallet providers in the crypto space, has been widely recommended for its secure storage of cryptocurrencies. However, the company’s frequent release of new devices and discontinuation of support for older ones has left some customers frustrated and insecure about the safety of their assets. Furthermore, Ledger’s focus on profit over security and customer support has raised concerns among the crypto community. This article aims to delve deeper into these issues and suggest some points for secure cryptocurrency storage.
A History of Ledger and Its Promise of Safe Storage
Ledger has been a popular hardware wallet among cryptocurrency holders due to its promise of safe storage. The company started early in the hardware wallet industry and was known for providing a secure solution for storing cryptocurrencies. Many people were advised to store their bitcoins in a Ledger and keep it in a safe place for long-term storage.
One of the key promises of Ledger is its focus on security. The company has developed a range of hardware wallets that are designed to provide the highest level of security for digital assets. These wallets are built with multiple layers of protection to ensure that the user’s private keys remain secure at all times. Ledger’s wallets also feature a tamper-proof design that ensures that the devices cannot be hacked or tampered with.
Ledger was founded in 2014 by Eric Larchevêque, who had previously worked in the tech industry for over 15 years. The company’s first product was the Ledger Nano, a hardware wallet that allowed users to store and manage cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. The Nano was followed by the Ledger Nano S and the Ledger Nano X, which added additional features such as Bluetooth connectivity and a larger screen.
Since its founding, Ledger has grown rapidly and now has offices in Paris, Vierzon, San Francisco, and New York. The company has also expanded its product line to include enterprise solutions such as Ledger Vault, which provides secure storage for large amounts of digital assets.
Lack of Support for Old Devices and Security Risks
However, the company’s focus on innovation and new product releases has resulted in a lack of support for older devices. If a user stored their cryptocurrencies on an old Ledger device, they may find that the device is no longer supported and must run a software update that risks wiping their hard drive clean. This could lead to a significant loss of funds and risks the security of the user’s digital assets.
Ledger, the popular hardware wallet, has faced criticism for its lack of support for old devices and the security risks associated with this issue. According to the official Ledger website, wallets are designed to provide a secure storage solution for cryptocurrency assets. However, due to the rapid pace of technological development, old devices eventually become obsolete, and Ledger has decided to end support for these devices. This means that users with older devices will no longer receive security updates or new features, leaving them vulnerable to security risks.
The lack of support for old devices means that these devices may be susceptible to hacks or other security breaches. This is because old devices may not have the latest security features, making them easier targets for attackers. Hackers may be able to gain access to the private keys stored on the device, which could result in the loss of all funds stored on the device. Moreover, as cryptocurrency transactions are irreversible, once funds are lost, they cannot be recovered.
Furthermore, the lack of support for old devices also means that users will not be able to take advantage of new features that may be available on newer devices. This can put them at a disadvantage when it comes to managing their cryptocurrency assets, as they will not have access to the latest security and management tools.
For example, one of the most significant security breaches happened in 2020 when a hacker gained access to Ledger’s e-commerce and marketing databases. As a result, the hacker gained access to the personal information of approximately 272,000 customers, including their email addresses, phone numbers, and physical addresses. This breach led to a wave of phishing attacks, where scammers used the stolen information to target Ledger customers with fraudulent emails and messages.
Another example is the lack of support for Ledger Nano S, which is one of the company’s older hardware wallets. In March 2021, Ledger announced that it would no longer support the Nano S for software updates, stating that the device had reached the end of its lifecycle. This decision left Nano S users vulnerable to potential security risks, as they were no longer able to receive important security updates and bug fixes.
In addition, there have been reports of security vulnerabilities in Ledger’s software and hardware wallets. In 2019, researchers discovered a flaw in Ledger’s Bluetooth implementation, which could have allowed hackers to remotely steal cryptocurrency from Ledger wallets. And in 2020, a researcher found a vulnerability in the firmware of the Ledger Nano X, which could have allowed attackers to steal private keys and seed phrases from the device.
Overall, these examples highlight the importance of always staying up-to-date with the latest security measures and using trusted hardware wallets. It is also essential to monitor your accounts regularly for any suspicious activity and be cautious of phishing attempts.
Also, Ledger’s frequent release of new devices has resulted in the discontinuation of support for older ones, leaving customers with potentially insecure devices. The company’s decision to halt support for the Ledger Nano S, a popular hardware wallet released in 2016, was met with criticism from customers who were left with devices that were no longer receiving firmware updates or security patches.
This approach undermines the initial promise of a safe place to store cryptocurrencies for the long term. Customers who followed the advice of storing their assets on a Ledger and putting it away for a decade now face uncertainty about the safety of their investments.
Collecting Data and Prioritizing Profit Over Security and Community Support
Critics argue that Ledger has prioritized collecting user data and generating profit over ensuring the security and support of its community. The company’s “Ledger Quests” have been criticized for collecting data while offering users the chance to win prizes. Furthermore, Ledger’s lack of community support and education has resulted in many users feeling left behind and unsupported.
Ledger’s focus on profit over security is evident in its frequent release of new devices, with added features that may not necessarily improve security. The company’s decision to launch an NFT display feature on its hardware wallet, for example, raises questions about the real purpose of the device. The company’s lack of transparency about the security of its devices, including the absence of publicly available code, has raised concerns about the safety of customers’ assets. Additionally, reports of the company stealing an employee from a competitor further undermine its reputation as a trustworthy and reliable provider of secure cryptocurrency storage.
Collecting Data
One of the biggest criticisms of Ledger is its collection of user data.As mentioned earlier, in 2020, the company suffered a data breach that exposed the personal information of over 270,000 users, including names, addresses, and phone numbers. While data breaches can happen to any company, Ledger’s approach to data collection has been called into question. The company requires users to provide personal information such as email addresses and phone numbers to set up their wallets, and some users have reported receiving unsolicited marketing emails from the company.
Prioritizing Profit Over Security
Did @Ledger hire a legacy marketing firm for this..?
It’s the only way I can think to explain this level of stupidity from a hardware wallet company. pic.twitter.com/WGwX8FlnPg
— Walker⚡️ (@WalkerAmerica) April 19, 2023
Another criticism of Ledger is that the company has prioritized profit over security. In early 2021, it was revealed that Ledger’s devices had a security flaw that could allow hackers to steal users’ cryptocurrency. While the company released a patch to address the issue, some users were critical of the company’s response. They argued that Ledger had known about the vulnerability for months but had not prioritized fixing it, instead focusing on releasing new products to increase profits.
Community Support
more issues with ledger. all you hardware wallet pushers need to step back. this is a joke. can’t even get my nft out. pic.twitter.com/F0azrqq4ca
— ben.eth (@eth_ben) April 17, 2023
Finally, some users have criticized Ledger for its lack of community support. While the company has a large user base, some users have reported feeling unsupported by the company when they have encountered issues with their wallets. This has led to frustration and a sense that the company prioritizes profits over its users’ needs.
@Ledger Step up your game. Too many issues lately. Updated to your latest ledger live and now can’t event access the wallet. Heard a lot of complaints from your support not responding lately as well. pic.twitter.com/bbWrqbqPV2
— BBHMM | ☔️ | SSPO | TOSI | FLZ (@BBHMM_Stake) March 5, 2021
Overall, while Ledger is still widely used and considered a secure way to store cryptocurrency, the company’s approach to collecting data and prioritizing profit over security and community support has led to criticism from some users. The company will need to address these concerns if it wishes to maintain its position as a leader in the hardware wallet industry.
Critique of Ledger’s Closed Code and Lack of Transparency
The company has also faced criticism for its closed code and lack of transparency. While Ledger claims to be an open, public company, it has not published the source code of its product for public scrutiny. This has raised concerns about the security of the product and left many users feeling uneasy about storing their digital assets on a Ledger device.
Closed Code
The closed-source code means that only the developers at Ledger have access to the source code, and the public has no way to verify its security or check for vulnerabilities. This creates a situation where users must trust Ledger’s word that their devices are secure, which has proven to be problematic in the past.
Lack of Transparency
In addition to the closed-source code, Ledger has also been criticized for a lack of transparency in its business practices. For example, the company has been known to collect data on its users without their knowledge or consent. As mentioned earlier, in 2020, Ledger was the victim of a data breach that exposed the personal information of more than 270,000 of its customers, including names, addresses, and phone numbers. The breach was a result of a third-party data breach at Ledger’s e-commerce partner, Shopify. However, the fact that Ledger was collecting this data in the first place has raised concerns among users and the broader cryptocurrency community.
Lack of Community Support
Another issue with Ledger is its lack of community support. While the company has a large and active user base, it has been criticized for being slow to respond to user concerns and for failing to provide adequate customer support. For example, some users have reported difficulties in reaching Ledger’s customer service team, and there have been complaints about the company’s slow response times to bug reports and other issues.
Overall, the closed-source code, lack of transparency, and lack of community support have led to a significant amount of criticism directed at Ledger. While the company has made efforts to address these issues, including hiring a Chief Information Security Officer and implementing bug bounty programs, it remains to be seen whether these steps will be enough to restore user trust and confidence in the company’s products.
Ledger Complaints
The Trustpilot page for Ledger.com contains a mix of positive and negative reviews from customers. Some customers have praised the product’s ease of use. However, there are also several negative reviews from customers who have experienced issues with customer support, faulty devices, and difficulty accessing funds. Some customers have complained about the lack of transparency and communication from the company regarding security breaches and software updates.
Overall, the reviews suggest that while Ledger is a popular and reputable brand, there are still areas for improvement in terms of customer service and product quality. Potential customers need to read through both positive and negative reviews and weigh the pros and cons before making a purchasing decision.
Why are users always required to do updates on their Ledger device?
1/2 Attention🚨 #MetaMask x #Ledger users!
We’re aware of connectivity issues between Ledger devices & @MetaMask. Both teams are collaborating on a solution.
Chrome users – Update to the latest MetaMask & Chrome versions and don’t forget to set WebHID as the preferred… pic.twitter.com/dPJx0wQ0V8
— Ledger Support (@Ledger_Support) April 21, 2023
It seems that there are some connectivity issues between Ledger devices and MetaMask, and both teams are working together to find a solution. However, in the meantime, Ledger is advising Chrome users to update to the latest versions of MetaMask and Chrome and to set WebHID as the preferred connection.
But why do users always have to go through these updates? Is it a necessary step to ensure the security and functionality of their Ledger device? Or is it simply a temporary solution to a technical issue that will be resolved soon? Regardless of the reason, Ledger users need to follow these instructions to ensure their device is up to date and functioning properly.
Updating the Ledger device is indeed essential to ensure that it remains secure and functional and to protect the user’s cryptocurrency assets but many Ledger users have expressed frustration with the constant stream of updates that the company releases for its hardware wallets. While updates are necessary to maintain the functionality and security of the devices, some users feel that the updates are excessive and unrelated to security.
These updates often require users to stop using their Ledger device and update the firmware, which can be time-consuming and inconvenient. Some users have also reported issues with the update process, such as failed updates or bricked devices.
Considerations for Choosing a Hardware Wallet
Given these concerns, it may be worth considering alternative hardware wallet solutions that prioritize security and community support. It is important to do research and choose a product that is transparent about its code, offers strong community support, and prioritizes security above all else.
When choosing a hardware wallet, there are several considerations to keep in mind:
- Security – The primary purpose of a hardware wallet is to keep your cryptocurrency assets secure. Look for a wallet that offers strong security features, such as PIN protection, recovery seed phrases, and two-factor authentication.
- Supported cryptocurrencies – Make sure that the hardware wallet you choose supports the cryptocurrencies you plan to store. Not all hardware wallets support the same cryptocurrencies, so do your research before making a purchase.
- User interface – A hardware wallet should have a user-friendly interface that is easy to navigate. Consider trying out different wallets to see which one you find most intuitive.
- Price – Hardware wallets range in price, so consider your budget when making a decision. Keep in mind that investing in a quality hardware wallet is an investment in the security of your cryptocurrency assets.
- Reputation – Consider the reputation of the hardware wallet manufacturer. Look for a company that is transparent about its development process and has a good track record for security.
Conclusion
While Ledger has been a popular hardware wallet for storing cryptocurrencies, recent concerns about the company’s lack of support for old devices, focus on profit over security and community support, and closed code has raised questions about its suitability as a storage solution. As always, it is crucial to prioritize security and research any product thoroughly before entrusting it with your digital assets.
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