Can Ledger be trusted? The CEO responds to concerns!

READ TIME - 1 min 49 seconds

Author

Daniel Akpobare
May 23, 2023

GM, this is The Crypto Explorer, If laughter is the best medicine, then consider us your daily prescription.

Here’s what we got for you today:

  • 🗣️ Ledger's CEO Confirms Access to Wallets!

  • 💰 DCG's $630 Million Payment Default.

  • 🧱 Around The Block: Binance off the hook from $8M Tinder lawsuit.

 Ledger’s CEO Responds!

Ledger's CEO Responds to Backdoor Accusations! 📢

After facing criticism over its latest firmware update called "Ledger Recover", Ledger's CEO has responded to the concerns in a YouTube video.

Here are the key takeaways:

  • The CEO confirmed that if subpoenaed by the government, they would turn over the three encrypted shards giving them access to your wallet.

  • While it is true that Coinbase had all their customer data subpoenaed by the IRS, it is unlikely that the same would happen to Ledger because Coinbase offers banking services which is completely different from what Ledger does.

  • The service is optional; users who are uncomfortable with it can continue using their devices without any worries.

  • Ledger is a good actor that doesn’t create backdoors, if they did; their business would go south very quickly.

You can watch the video here. (we encourage you to watch the video, you'll be amazed at his response).

Despite the CEO’s statements, the crypto community still has concerns - a lot of which are centered on the credibility of what Ledger is saying to its customers.

Ledger keeps stating that access is only available if users opt in and follow the necessary steps to enable the feature.

However, since they're closed-source and nobody can review their code we really don't know. 🤷‍♂️

We would have to "trust that they're telling us the truth.

In the meantime, the summary of this whole saga is don't opt into “Ledger Recover” and you can't be subpoenaed through Ledger because they won't have any KYC or your seed phase.

DCG’s $630 Million Payment Default.

Digital Currency Group (DCG), the parent company of Genesis' lending division, is caught up in the bankruptcy proceedings involving Gemini and Genesis.

Here’s the backstory for those who don’t know: Earlier in May, creditors of Genesis agreed to a 30-day mediation period and the appointment of a court mediator after some creditors distanced themselves from a reorganization plan put forth in February. The update stated that Gemini would initiate a 30-day mediation process to determine the contribution that DCG and its affiliates should make to the Genesis bankruptcy.

Recently, many feared that DCG might fail to make a repayment to the bankruptcy estate starting from the week of May 9.

Well, those fears have been confirmed.

In a transparency report, Gemini (a creditor of Genesis) revealed that DCG had not made a $630 million payment due during the week of May 9.

We might have come full circle. DCG, which owned Coindesk, first ignited the fire of Alemeda, leading up to the collapse of FTX, and now we're back to DCG.

Karma has a funny way of catching up, doesn't it? 😃

So, what's Gemini's plan to deal with this default?

  • Firstly, discussions are underway between Genesis, Gemini, and creditor groups like the UCC (Unsecured Creditor Committee) to determine whether to grant DCG forbearance, as a way for the company to avoid default. However, the decision to grant forbearance depends on the parties' confidence in DCG's willingness to sincerely engage in negotiations for a consensual resolution.

  • Secondly, if mediation fails to yield an agreement, Gemini and Genesis will collaborate on proposing the terms for an amended reorganization plan without DCG's consensual participation.

  • Thirdly, Gemini is planning to file a claim against Genesis, seeking the return of over $1.1 billion worth of digital assets that Genesis has allegedly refused to return to approximately 232,000 users who had active loans as of January 19, 2023.

We feel bad for the Gemini Earn Users caught up in this bankruptcy whirlwind.😟

If you're one of the Gemini earn users, we encourage you to read the transparency report.

🧱 Around The Block: Binance Off the Hook from $8M Tinder Lawsuit.

That's all we've got for you today.

Please don't forget to rate today's email and let us know what you like about it.

In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own re

Reply

or to participate.