Developers Criticize "Cash Cow" Strategy and Lack of Transparency
Ledger's latest update, intended to showcase innovation, has instead ignited controversy. The company's new native multisig feature, launched with the Nano Gen5 and updated Ledger Wallet app, has drawn criticism for introducing new fees and limiting compatibility.
Many developers initially welcomed the upgrade, which allows users to coordinate multi-signature transactions directly through Ledger’s backend rather than relying on third-party tools like Specter or Sparrow. However, the introduction of a $10 fee per standard transfer and a 0.05% fee on ERC-20 token transactions sparked strong backlash. Critics argue that monetizing each transaction undermines Ledger’s original mission of empowering self-custody without intermediaries.
Security researcher pcaversaccio, a key contributor to SEAL-911, described the move as a "cash-cow" strategy that betrays Ledger’s cypherpunk ethos. He warned that the per-transaction fee model risks transforming self-custody into a corporate revenue stream.
The sentiment was echoed by “Sarnavo,” a developer from the Avalanche ecosystem, who noted that while features like clear signing improve security, they are now hidden behind paywalls. Sarnavo criticized Ledger’s closed-source interface, arguing that users can’t verify how data is handled during signing, raising transparency concerns.
Accessibility Concerns for Legacy Users
Beyond pricing, functionality also came under scrutiny. Ledger confirmed that its new multisig service isn’t available on the legacy Nano S, once its most popular and affordable hardware wallet. Millions of long-time users now find themselves excluded, as the older model lacks memory capacity for clear signing or new coordination tools.
For many in the crypto community, the controversy cuts deeper than software changes. Developers view Ledger’s new approach as a departure from its open, user-driven principles — a pivot toward profit that risks alienating its core base.