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All hardware wallets share their public key after the pin is entered. That’s normal operation. They absolutely should not be programmed to share your private key, and honestly there’s no indication that they do, just that they could with a firmware update. Still there is trust involved there. Trust in a greedy corporation.
But you’ve always trusted that your device isn’t sharing your private key (it wouldn’t be your seed, but same result), as the software is closed-source. Even before, people just ‚trusted‘ ledger that it wasn’t possible. The only difference now is that Ledge admits it is possible.
I’m not surprised you were banned. Ledger is taking a huge beating over this and doing major damage control.
But that is reason for doing multi-vendor multisig, right? Still, you’d be better off pairing that trezor with a coldcard or blockstream jade, as all those devices do use open-source peer-reviewed software.