Ledger, a leading cryptocurrency hardware wallet provider, has sparked controversy with the launch of its native multisig feature, which introduces per-transaction fees criticized as a "cash cow" model by developers and long-time users. The feature, unveiled alongside the Ledger Nano Gen5 hardware wallet, aims to streamline multi-signature transactions through Ledger's backend infrastructure but has drawn sharp backlash over its pricing structure.
The Ledger Nano Gen5, priced at $179, includes an e-ink screen, secure signing, and tap-to-unlock functionality via NFC. The device also supports a $179 Ledger Security Key, a physical card-sized tool that replaces seed phrases for unlocking wallets. Susan Kare, the designer of the original Apple Macintosh icons, created a series of customizable badges for the device. However, the new multisig system has overshadowed these features, as users question the financial implications of the service.
Under the new model, standard transactions incur a $10 flat fee, while ERC-20 token transfers are charged 0.05% in addition to network gas costs. Security researcher "pcaversaccio," a core contributor to the crypto-security network SEAL-911, accused Ledger of prioritizing profit over user trust, tweeting that the fees contradict the company's "cypherpunk roots." Developer "Sarnavo" of Avalanche's Team1 noted that the closed-source nature of Ledger's coordination system and opaque transaction handling further undermine transparency.
Critics also highlighted the exclusion of Ledger's older Nano S devices from the new multisig system. Millions of users still rely on the Nano S, which lacks the memory to support clear signing or the updated coordination backend. Longtime users described the move as exclusionary, with pcaversaccio stating that Nano S owners are "basically censored" by the new requirements. This has fueled frustration among a user base that once viewed Ledger as a champion of self-custody.
Ledger defended the rollout by emphasizing its institutional focus, with Ledger Enterprise Multisig designed for hedge funds, DAOs, and traditional financial institutions. The system allows teams to co-sign transactions using individual Ledger devices, ensuring "Clear Signed" approvals verified directly on hardware. However, critics argue that these enterprise tools do not justify the fees for retail users, who now face a paywall for core security features.
The backlash comes as Ledger faces increasing competition from rivals like Trezor, which recently launched the Safe 7, a quantum-ready wallet with open-source hardware. Meanwhile, mobile-first signers such as Solana's Seeker and Ethereum's dgen1 are targeting on-the-go users, further fragmenting the market. A spokesperson for Ledger did not immediately respond to requests for comment on the fee structure or user concerns.
The controversy underscores a broader tension in the crypto industry between security, usability, and profitability. While Ledger's enterprise initiatives may appeal to institutional clients, the new fee model risks alienating individual users who prioritize open-source transparency and affordability. As the market evolves, Ledger's ability to balance innovation with user trust will be critical to maintaining its leadership in the hardware wallet space.
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