Two of the most widely used cryptocurrency wallets in the world, the Ledger Live and the Metamaskare accused of collecting various data from their users, including clicks, transactions and their own wallet assets.
Another less popular wallet that also collects data is the Avalanche wallet, which works as a browser extension just like MetaMask.
In the comments, some users emphasized that this data collection is nothing new and that both companies are transparent about it. However, some were overwhelmed by the information and may want to take steps to improve their privacy.
Data collection by Ledger wallet is more than worrisome, says researcher
The first portfolio analyzed by RektBuilder was the General ledger, one of the most widely used hardware wallets in the world. To be clear, the study focused on the Ledger Livean application often used by those who purchase a Ledger.
“Ledger Live transmits [informações de] account balances and NFTs you keep on your device to a service called segment.io”wrote RektBuilder. “It also sends a user ID and other personal data. In short, Ledger knows every asset on every existing device.
“Ledger Live’s data collection is beyond disturbing.”
Ledger Live sends account balances and NFTs that you keep on the device to a service called segment. io
It also sends a userId and other personal data.
Basically Ledger knows every asset on every device out there
Why is this okay?https://t.co/mw1EW9c9l5
— REKTBuildr 🔺🔺🔺 (@rektbuildr) December 6, 2023
The information is not that surprising. After all, Ledger CEO Pascal Gauthier revealed in October that his wallets were responsible for the security of 20% of the world’s cryptocurrencies. In other figures, Ledger wallets store approximately R$1.55 trillion worth of cryptocurrencies.
However, balances aren’t the only data collected by the Ledger wallet, which extends to more invasive features like every click you make with your mouse.
“The tracking code is too structural to only count users and downloads like normal apps do”writes RektBuilder on its website. “The LL [Ledger Live] does analytics on everything from screen displays to button clicks, error events, installations, uninstalls, etc. Everything you do on this app is tracked.”
“They appear to be in the business of collecting user data. Selling hardware is just onboarding.”
Fortunately, Ledger wallet users have some options to limit this data collection. One of them is to disable the “Analytics” feature in the Ledger Live Settings tab.
Another even better one is to use other software to connect your Ledger, because the physical wallet maintains its security even when connected to other compatible software.
MetaMask also collects various data from its users
While Ledger is one of the best-known hardware wallets, MetaMask is one of the most used hot wallets in the world. Known for its practicality, it works as a browser extension and provides access to various networks such as Ethereum, Binance Smart Chain and other blockchains.
Like Ledger Live, MetaMask has been accused of collecting various data from its users.
“Metamask uses the same tracker as Ledger Live.”
“By the way, I just noticed that Metamask uses a 1×1 pixel iframe for analytics, lol”continued RektBuilder. “This is an old fashioned web trick! Using 1×1 invisible GIFs to track subsequent page loads and iframes.”
By the way, I just noticed that Metamask uses a 1×1 pixel iframe for analysis LOL
This is a web trick from the past! Using 1×1 invisible GIFs to track page loads and later iframes. pic.twitter.com/lBMD7GKbny
— REKTBuildr 🔺🔺🔺 (@rektbuildr) December 10, 2023
In the comments, a follower noted that this is also nothing new. When installing the wallet in the browser, MetaMask asks if the user wants to contribute data such as “anonymized page view and click events”.
Although optional, RektBuilder notes that no cryptocurrency wallets should have trackers in the code. After all, this data is sensitive because it may contain financial information from investors.
Finally, it’s worth remembering that Ledger has been involved in two major discussions in recent years. The first was the leak of his database, which contained various information about his customers. More recently, it was criticized for a service that would store wallet private keys in the cloud, which conflicted with its proposal.
MetaMask has been criticized for storing its users’ IP addresses, which also put it at risk of leaks.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
