Ledger’s Offline Key Recovery Feature Sparks Security Debate

Ledger's introduction of an offline key recovery feature for new wallets has ignited a fresh wave of security concerns in the crypto community. The hardware wallet provider, long touted as a secure solution for keeping private keys inaccessible, now offers optional recovery through a smart card storing a master secret.

The Recovery Key system utilizes NFC technology and a tamper-resistant Secure Element chip, designed to prevent leaks or hardware extraction. While the feature addresses high-profile cases of locked devices, security experts question the potential risks of secondary PIN abuse.

This marks Ledger's second attempt at implementing recovery options, following previous controversies. The company has published a whitepaper detailing the offline functionality, emphasizing multiple security layers including a dedicated OS and secure factory environment.