With the most recent Ledger update, a new Recovery feature has been enabled, which allows the user to divide and send their seed to different custodians for later retrieval. While this may sound convenient, it is a huge red flag and could indicate that the Ledger wallet is no longer secure.
The update allows the user to export their private keys, which is a major concern as this defeats the entire purpose of having a hardware wallet. This is especially worrying considering the fact that the secure element is able to transmit the seeds which is a vulnerability until proven otherwise.
Ledger was quick to provide an explanation of how the Recovery tool works and how it shares the seed, but this has not been enough to put everyone’s mind at rest. After much speculation, Ledger has pulled the update and likely cancelled the entire thing.
It is important to note that just because the update can be skipped and the feature is subscription only, this does not necessarily mean that the Ledger wallet is secure. Even if there is no active firmware leak, the fact that the secure element is able to transmit the seeds is still a major concern.
Ultimately, the decision to use the Ledger wallet is up to the individual and they must weigh up the pros and cons of using the wallet. It is also important to keep an eye on any updates that may be released in the future.