Ledger, the hardware wallet company, is introducing its cloud-based private key recovery solution, Ledger Recover, despite facing criticism from the crypto community. The service, launching on October 24th, is aimed at providing an enhanced layer of resilience for users who may lose or destroy their Secret Recovery Phrase (SRP) – a unique list of 24 words that backs up private keys and provides access to crypto assets. Ledger Recover is a paid subscription service provided by Coincover, a blockchain protection platform.
Ledger’s Recover solution has been developed for users who want to safeguard their SRP and ensure they can recover their crypto assets in case of loss or damage to their hardware wallets. Charles Guillemet, Ledger’s Chief Technology Officer, emphasizes that the service is optional and users can continue to use their Ledger hardware wallets as they did previously without any changes.
During the initial launch, Ledger Recover will be compatible with Ledger Nano X, with integration for Ledger Stax and Ledger Nano S Plus coming soon. However, the solution will not be compatible with the Ledger Nano S, according to the Ledger Recover FAQ.
Initially, Ledger Recover will be available to passport or identity card holders in the United States, Canada, the United Kingdom, and the European Union. The company plans to expand coverage to more countries and additional document support in the future.
To use Ledger Recover, users will need to undergo an identity verification process, which requires a valid government-issued document. Ledger emphasizes that this verification process is not the same as the Know Your Customer (KYC) checks conducted by centralized cryptocurrency exchanges. KYC checks typically collect more information, such as revenue details, criminal records, and citizenship verification.
According to social media posts, the Ledger Recovery service will be available for $9.99 per month or approximately $120 per year. If a user fails to pay the subscription fee, the subscription will be suspended, but the user can reactivate it within the next nine months by paying an administration fee of 50 EUR along with any outstanding balance.
Ledger’s decision to launch Ledger Recover follows a temporary pause in May 2023 in response to community backlash. The CEO of Ledger, Pascal Gauthier, clarified that the recovery service would only be relaunched once the open-source code is released.
In comparison, Ledger’s major competitor, Trezor, has opted for a physical backup solution instead of a cloud-based recovery service. Trezor recently introduced its own physical seed phrase recovery tool, Trezor Keep Metal.
As the crypto industry continues to evolve, the security and recovery of digital assets are becoming increasingly important. Ledger’s new cloud-based private key recovery solution aims to provide added peace of mind for users, offering a convenient option to safeguard their crypto assets in case of any unforeseen circumstances.