Close Menu
    Cryptocurrency

    Don’t Use Ledger Hardware Wallets



    Learn to build your own Bitcoin vault:
    https://www.trader.university/courses/38824-the-ultimate-guide-to-bitcoin
    Use the discount code YT99 to get the best price.

    In this video, I discuss the recently launched Ledger Recover service and what it implies about security problems with the Ledger hardware wallet.

    I have always recommended against using Ledger hardware wallets, especially in a single sig setup. The fact that the firmware was and remains closed-source was always a deal-breaker for me. Ledger’s many customer data leaks also showed a remarkable disregard for user security and privacy.

    Now we learn that the new firmware (which is still closed-source) will have the ability to export encrypted shards of the recovery seed. Here’s the big problem in my opinion: if the new Ledger firmware has the ability to split the recovery seed into 3 encrypted shards and send them out from the hardware wallet– this is not only a feature, but also a potential vulnerability that can be exploited by an attacker.

    What happens when a government goes to these 3 custodians and forces them to reconstruct your private key from the 3 shards, after you have KYC’d yourself?

    Stick to Bitcoin-only hardware wallets that have open source and viewable firmware, like the Blockstream Jade and ColdCard hardware wallets.

    I’m not being paid or compensated in any way by any of these companies that I mention in this video.

    Not investment advice! Consult a financial advisor.

    Ledger data leaks:
    https://cointelegraph.com/news/ledger-data-leak-a-simple-mistake-exposed-270k-crypto-wallet-buyers
    https://thedefiant.io/ledger-suffers-another-data-leak

    Don’t Use Trezor Coinjoin (Or Trezor):

    Trezor’s Betrayal (Your Questions Answered):

    Ledger Launches Distributed, KYC-Based, Cloud Seed Recovery Service Then Quickly Deletes It:
    https://www.nobsbitcoin.com/ledger-to-launch-kyc-cloud-based-recovery-service/

    Ledger Recover is “optional”:

    Shamir’s secret sharing:
    https://en.wikipedia.org/wiki/Shamir%27s_secret_sharing

    My favorite 2 hardware wallets:
    https://blockstream.com/jade/
    https://coldcard.com/

    I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

    My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

    #Bitcoin
    #ledger
    #hardwarewallet

    Disclaimer
    Neither Bitcoin University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.

    View 45 Comments

    45 Comments

    1. Bitcoin University on

      WARNING: There are a number of scammers who are using my image and
      channel name to try to connect with my viewers on WhatsApp and other
      platforms to scam them. Just so you know, I will never refer you to
      "my personal trader" or try to connect with you personally to sell you
      something. I am trying to ban these scammers as quickly as they pop up. You can
      always recognize a scammer by clicking on the image and seeing how
      many videos he has. All of these guys have zero videos, while I have
      hundreds. I also now have a checkmark next to my name, so that you can distinguish the real Bitcoin University from the imposters. Follow me on Twitter @mattkratter

    10. See Vee on

      Thanks for the video. We start to remember what centralised banking services do and provide to the community – safeguard and insure our wealth. If BTC and other block-chain technologies are to be adopted by the masses, issues like this have to be solved.

    11. SatWise Janx on

      Thanks to the Bitcoin University community and Matthew's extrordinary diligence, i finally purchased Jades to replace my Ledgers.

      I'm going to wipe both ledgers and practice multi-sig, which is the last bit of wisdom I've yet to adopt from Bitcoin University. Actually would that make me certified? I can just picture the associated BU Ordinals for graduates. 😅

    13. INFINITY on

      The biggest problem with this is they can extract your seed phrase from your Ledger device. This is the biggest reason why everybody is angry about this. The only way Ledger can come back from this is if they make their software open source! It's highly likely that they have already taken certain seed phrases from certain Ledger devices! It was so obvious from the start as to why their software isn't open source!

    17. Dantres on

      This is unbelievable, it defeates the whole purpose of a hardware wallet! At first I thought this was a joke but apparently it's not! 🤮

    20. Choose Vegan on

      I would love to switch to CC or BSJ but I've seen other viewers on your channel mention many issues they face with those wallets. For this reason it's put me off

    21. Tizou007 on

      Can’t use ledgers, can’t use Trezor, can’t use online wallets, can’t trust exchanges, have to research even deeper to keep your crypto safe. Have to worry about gov regulations and constantly watching you….I’ve been a supporter of Bitcoin for a very long time. And for the first time ever…I’m really frustrated with it all. It is so non user friendly…the jump to learn/protect yourself is far to big…and far too complex to really get retail to buy into the idea. I get it we’re early…but…at what cost? 99% of this shit is sooo over complicated :/

    27. Raymond on

      Thanks, Matt. I've been using ledger for about 4 years since I started buying BTC. In hindsight I would probably do things differently, but they were the most recommended option at the time. Do you think it's necessary to move funds to a separate address/seed or would you just recover your wallet onto a Blockstream Jade (if you had a Ledger)? What would be the benefit here for someone who only deposits bitcoin into their cold storage address and doesn't use other services by Ledger?

    28. Linda Lagana on

      Thanks, Matt. I know how to transfer bitcoin between my Ledger and an exchange, but clueless about how we would transfer our Bitcoin from the Ledger NanoS to one of the cold storage wallets you recommend. Can you make a video showing up how that's done?

    32. Frito on

      so it was all bullsh!t. That's just great. Everything digital will eventually go to its intrinsic value ie. elecrons and they're EVERYWHERE. Looks like it is back to gold. The only thing the government can do is pry it out of my cold dead hands.

    37. XoPhOzY on

      I bought one 2 months ago cause I’m about to start DCAing again and like… I don’t want to anymore. What do we use then?

    39. BLR on

      I use trezor hardware wallet model one. No coinjoin. Only use to store btc, digibyte. Very safe. Very good. BITCOIN as digital gold, Digibyte as currency. Both pass the Howey test and are NOT securities but property assets and backed and secured by proof of work.

    42. J H on

      coldcards dont make sense, it's not an easy wallet. i have one and tried to set it up and have no clue how to make an address or anything

    Leave A Reply
    Share via