PSA: Ledger is officially a hot wallet. It can expose your seed phrase to third parties! (Confirmed on their sub)

I woke up to shocking news!

TLDR The ledger device actually can expose your seed phrase to the internet.

Initially it was a speculation and people were expecting updates. Eventually, we got them:

https://np.reddit.com/r/ledgerwallet/comments/13itm7u/is_there_a_backdoor_yes_or_no/jkbyyfp

So yes, it's a service your can opt for for "recovery services", but the bottom line is that it can expose the seed phrase.

Ultimately, it's a matter of the French government knocking on their doors and asking for it.

This actually makes your funds at Ledger less safe than on MetaMask. At least we don't have a confirmation that other hot wallets can access or keep copies of the seed phrases.

Leger, it was nice while it lasted...

But it's game over.

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Edit: to the people downvoting my comments: I'm also a Ledger user. Have been using it for multiple years to store my crypto. I'm not happy that this happened and I hate the upcoming inconvenience of buying new wallets and sending crypto back and forth. But unfortunately, this is the reality. :(

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Edit 2: Many users say

but you can choose not to opt-in!!1

You can't opt out of the device being able to leak data to the internet.

You can only opt out of Ledger doing it with intent.

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Edit 3: They just doubled down on Twitter spaces.

They described the product and didn't address the relevant comments and concerns. They kept repeating that it's an "opt in service" and finished by saying that their product is not for people with more than $50k.