Famous hardware wallet company Ledger will introduce its cloud-based private key recovery solution despite significant criticism from the crypto community. Ledger’s hardware wallet will release its identity-based private key recovery service, Ledger Recover, on October 24. The company officially announced this development on X, and the release comes with Ledger completing the open-source code for Ledger Recover on GitHub.
Ledger’s new seed phrase recovery solution, provided by blockchain security platform Coincover, is a paid subscription service that allows users to back up their Recovery Phrases (SRP). SRP is a unique list of 24 words that backs up private keys and provides users with access to their crypto assets.
Charles Guillemet, Ledger’s Chief Technology Officer, explained that Ledger Recover is designed for users who want to add an extra layer of flexibility in case their SRPs are lost or destroyed. He also emphasized that Ledger Recover is an optional recovery service, stating:
“If you don’t want to use this service, don’t worry, because this alternative method will always be 100% optional. You can continue using your Ledger as you have before, and nothing will change.”
Ledger Team’s Statement
Ledger Recover is initially compatible with Ledger Nano X, and integration with Ledger Stax and Ledger Nano S Plus will be added soon. According to the frequently asked questions section of Ledger Recover, the solution is not only compatible with Ledger Nano S. Initially, Ledger Recover can be used by passport or ID card holders in the US, Canada, the UK, and the European Union. However, the team stated that more countries will be included in the coverage.
The company emphasized that Ledger Recover’s identity verification is not the same as Know Your Customer (KYC) checks performed by centralized crypto exchanges. Ledger stated that the recovery system only requires a valid identification document:
“Identity verification naturally collects much less information compared to KYC. KYC includes identity verification, but it may also include income information, criminal activity records, citizenship checks, etc.”
According to social media posts, Ledger Recovery service will be offered at a monthly cost of $9.99. If a user does not pay the subscription fee, the subscription will be suspended, and the user will be allowed to reactivate their subscription within the next nine months.
