Éric Larchevêque, the former CEO of Ledger, has addressed the recent controversy surrounding the well-known cryptocurrency hardware wallet manufacturer. In a Reddit post on May 18, 2023, Larchevêque described the situation as a “terrible mess” and emphasized that the controversy primarily resulted from a public relations mistake rather than a technological flaw.
Last week, Ledger came under heavy criticism after introducing a service that granted the company control over the storage of seed words, a crucial element of cryptocurrency security. This move sparked widespread controversy and raised concerns within the crypto community.
The controversial firmware update introduced a new feature called “Recover,” which required a subscription. However, the contentious aspect of this feature was the mandatory submission of Know Your Customer (KYC) credentials and the requirement to grant Ledger access to client seed phrases. These actions directly contradicted Ledger’s previous emphasis on privacy and security, which had been key selling points for their products.
Larchevêque shared his thoughts on the matter in the subreddit he had created nine years ago, only to be met with insults, images of destroyed Ledger devices, and significant anger. He admitted that he was on the verge of tears due to the situation and expressed deep disappointment. Larchevêque took responsibility as a co-founder and apologized for the mishandling of the feature launch, while defending the technical aspects of the system.
The former CEO highlighted the importance of trust and faith when using Ledger’s products. He argued that approaching hardware manufacturers, such as Ledger, with a hostile mindset and considering them adversaries would hinder establishing a functional relationship.
This is not the first time Ledger has been involved in a controversial public relations incident. In 2020, the company experienced security breaches that resulted in significant data leaks, impacting a substantial number of customers. As a result, up to 270,000 customers’ data was compromised, leading to a surge in phishing and SIM swap attempts. Many individuals were left vulnerable to attacks, with some experiencing the loss of their cryptocurrency holdings and others facing more severe consequences, including death threats.
Despite facing multiple lawsuits, Ledger did not compensate the affected victims and chose not to acknowledge their complaints. This lack of response and support further exacerbated the dissatisfaction among those impacted by the security breaches.
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