Ledger's Key Recovery Service: A Lifeline or Leash?🔑
Ledger is shaking up the game with their controversial new "Recover" feature, while Swaprum decided to pull the rug and take off with $3 million.
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We're dishing out these juicy tidbits today:
Ledger heats up with new recovery feature
Swaprum pulls a sneaky $3M stunt
XRP making waves with PolySign's custody talk
Celsius on an ether unstaking spree
The Debate Over Ledger Recover, A Newly Introduced Feature
Leading the news, Ledger, a top-tier crypto wallet provider, has recently rolled out a somewhat controversial service dubbed "Ledger Recover." At $9 a month, this subscription-based feature offers users a safety net, helping them to recover their private keys in case of a loss. Here's how it works: subscribers provide identification in line with KYC regulations, after which their private keys are broken into three encrypted parts and distributed to three separate firms: Ledger, Coincover, and EscrowTech. These companies then leverage the KYC data to verify wallet owners when the recovery tool is summoned into action.
Ledger Recover is our upcoming and optional service for users who want a secure backup of their Secret Recovery Phrase. Do you want to learn more about the onboarding process and specificities?
A thread 🧵
— Charles Guillemet (@P3b7_)
May 16, 2023
That said, it's not all roses. Quite a storm has been brewing within the crypto community over this new feature. Cold wallets are traditionally offline and fully self-custodied, starkly contrasting with hot wallets that maintain internet connectivity. The very idea that any entity, including the company selling them their cold crypto wallet, could have access to their private keys, has sent shivers down the spine of many users. Ledger has been on the defensive, rebuffing accusations of private key access vehemently. But the KYC requirement has further fueled the fire, triggering backlash from the privacy-loving faction of the community. Add to it Ledger's prior missteps, like the infamous customer contact information leak of 2020, and you get the picture.
Undeterred by the criticism, Ledger's CTO, Charles Guillemet, has stepped up to defend the feature, asserting that users have full control over the backup or recovery process — they must actively consent on their device to engage Ledger Recover. (Read more: TechCrunch)
Despite the controversy surrounding Ledger's new "Ledger Recover" feature, we at Crypto Asset Recovery want to emphasize that we still believe in Ledger and its dedication to providing secure, user-friendly crypto wallets.
This new feature reflects an attempt to bridge the gap between self-custody and custodial solutions, offering an extra layer of protection for those concerned about losing access to their assets. It demonstrates foresight and care for their customers' peace of mind. As the dust settles and Ledger refines this feature, we believe many of the current criticisms will pass. We still recommend checking out Ledger to anyone looking for peace of mind.
Swaprum's Shocking $3 Million Scam Leaves Investors High and Dry
On to our next crypto fiasco. Swaprum, a decentralized exchange operating on the Ethereum Layer 2 network, Arbitrum, performed a disappearing act, pulling what we in the industry call an "exit scam" or "rug pull." Result? They just made away with a cool $3 million.
Blockchain security firm, PeckShield, pieced together the scene through on-chain analysis. Swaprum's crafty team transferred 1,628 ETH, roughly equivalent to $3 million, out of their platform's liquidity pools, plummeting the price of Swaprum (SAPR) tokens and turning remaining tokens into virtual confetti. The ill-gotten gains then hopped onto the Ethereum network from the Arbitrum network, veiling their tracks through Tornado Cash. Who knew a smart contract could house a hidden backdoor? In true Houdini fashion, the Swaprum team vanished, leaving only the ghost of their social media accounts and a non-responsive website behind. (Read more: https://www.theblock.co/post/231539/swaprum-dex-exit-scam-arbitrum?utm_source=cryptopanic&utm_medium=rss)
This wild escapade underscores the old adage: beware of the rug, and doubly so when it's riddled with holes. 🤣
XRP Spotlight as PolySign CEO Discusses Crypto Custody Plans
Swinging our focus to the realm of crypto custody, Jack McDonald, CEO of PolySign, dropped some insights about the company's plan to beef up its XRP custodian business. PolySign, a crypto custody service provider operating in a similar sphere as Metaco, Ripple's latest acquisition, shared that XRP isn't the most sought-after cryptocurrency for customers. Despite this, McDonald assures that there's a cohort of customers looking for a trustworthy custodian for their XRP assets — a promising sign for the company. Ripple's CTO, David Schwartz, meanwhile, chimed in, highlighting that PolySign and Metaco are not competitors, and the acquisition was a strategic move in line with Ripple's vision. It seems XRP is stepping into the limelight, making it a potential gem for hodlers! (Read more: https://u.today/were-starting-to-grow-our-xrp-custodian-business-polysign-ceo)
Celsius Withdraws Masses of Ether Amid Bankruptcy Woes
In more sobering news, shortly after the bankruptcy-stricken platform Lido Finance shifted nearly $800 million of staked ether tokens, Celsius followed suit. This crypto lending platform has now set in motion the exchange of stETH tokens for underlying ETH. A look at the data reveals that Celsius has already requested withdrawals for 240,000 stETH, which equates to a substantial sum of approximately $437.7 million. A further 188,000 stETH, or roughly $342 million, is still up for the taking.
Having grappled with issues concerning its ETH staking operations last year, Celsius's withdrawn ether could potentially be channeled into restructuring efforts or used for creditor repayments. It's worth noting that the platform has about $4.7 billion to pay out. (Read more: https://www.theblock.co/post/231051/celsius-moves-to-unstake-hundreds-of-millions-of-dollars-worth-of-eth?utm_source=cryptopanic&utm_medium=rss)
What did you think of this weeks edition?