What Happened on May. 16th | Ledger's New Function Spur Controversy

TI Research

Ledger just released a new update for its hardware wallet Nano X that allows social recovery of seed phrases. However, this function has spurred controversy among crypto communities.

In Ledger's new upgrade version 2.2.1, the hardware wallet company introduced a new function called Ledger Recover. If users enable this function, Ledger will encrypt your seed phrases using cryptography and send it to different entities that can then reconstruct seed for you. This is a ID-based key recovery service that provides a backup for secret recovery phrases.

Whilst the intention is good, this method poses several risk factors for users. Mudit Gupta, the Chief Information Security Officer of Polygon, pointed out on Twitter.

Firstly, the encrypted keys parts are sent to 3 entities and they can reconstruct the keys, but the implementation details about who these entities are seem unclear. Secondly, Ledger uses ID verification to confirm your request for key reconstruction. Identity theft is relatively easy and quite common, making this not a secure method.

Biggest Gainers & Losers

Source:TokenInsight Gainers and losers


US SEC Claims It Has No Obligation to Release New Crypto Regulations: The U.S. Securities and Exchange Commission (SEC) has given responses to Coinbase's petition for formal rulemaking in the digital assets sector on the court, claiming that it has no obligation to issue new regulations and Coinbase has no standing to sue it.

Justin Sun Tackles Leon Li's Brother, to Burn the $HT He 'Received for Free': Justin Sun tweeted today that Huobi founder Leon Li's brother Li Wei had repeatedly acquired a large amount of zero-cost $HT through abnormal means, and repeatedly sold and made huge withdrawals within the Huobi platform.

Hot projects on the market

BRC-20 Trading Platform BITDA to Launch ICO on May 18th

Ribbon Finance introduces Aevo for Alt-coin Options Products

Optimism Bedrock Mainnet Upgrade Scheduled on June 6, 2023, expecting 2-4 Hours of Downtime

Other news in case you missed it:

OKX Web3 Wallet to Support Minting Ordinals and BRC-20 Tokens

Compound III Deployed to Arbitrum

CertiK Partnered with Alibaba Cloud to Offer Security Services to Web3 Projects

US SEC: Jump Trading Earned $1 Billion through Secret Dealings with Terraform Labs

Council of EU Adopts Crypto Regulation MiCA


Animoca Ventures Raising Second Early-stage Venture Fund

Red Beard Ventures Raises $25M with Participation from Animoca Brands and Others




TI Research

TokenInsight is a data and research organization for the digital asset market. TI provides comprehensive asset-related data and comprehensive and timely information and research services for digital assets.

Use TokenInsight App All Crypto Insights Are In Your Hands