Ledger Launches “Recover”, Offering Cloud-Based Private Key Recovery For Crypto Wallet
Despite facing resistance, Ledger the crypto wallet maker introduces its private recovery key solution, "Recover", providing an additional layer of security for crypto wallet users.
French cryptocurrency hardware wallet manufacturer, Ledger, has officially launched its controversial new service named “Recover.” This backup option for users’ seed phrases is now available on Ledger’s popular wallet model, Nano X.
Seed phrases, vital for accessing digital wallets, are a string of 12 or 24 words. Losing these phrases renders digital assets irretrievable. “Recover” addresses this issue by encrypting, duplicating, and dividing users’ private keys into three parts, held by Ledger, Coincover (a crypto security firm), and an independent backup service provider. Critics argue this potentially makes private keys more vulnerable.
Ledger’s CEO, Pascal Gauthier, defends “Recover,” citing high demand from users seeking to safeguard their crypto holdings against lost seed phrases. He emphasized that lost Secret Recovery Phrases have deterred people from using self-custody wallets.
The service operates as a paid subscription, providing an ID-based private key recovery solution, and is initially available to passport or identity card holders in the US, Canada, the UK, and the EU. Ledger plans to expand to more countries and support additional documents. The open-source code for Ledger Recover is available on GitHub.
Users desiring an extra layer of security can opt for the “Recover” service, while others can continue using their Ledger wallets as usual. The service is compatible with the Ledger Nano X, and integration for Ledger Stax and Ledger Nano S Plus is planned.
Ledger’s identity verification process for “Recover” is distinct from Know Your Customer (KYC) checks by centralized crypto exchanges, requiring only a valid, government-issued document. The service costs $9.99 per month or approximately $120 per year, with a nine-month grace period to reactivate the service upon a failed subscription payment.
Despite a temporary pause in May 2023 due to backlash, Ledger proceeded with launching “Recover” after releasing its open-source code. This move contrasts with Trezor, Ledger’s main competitor, which recently introduced Trezor Keep Metal, a physical seed phrase recovery tool.
