Hardware wallet manufacturer Ledger has introduced its cloud-based private key recovery solution, Ledger Recover, despite facing backlash from the cryptocurrency community. This ID-based private key recovery service for Ledger hardware wallets was officially announced on October 24, and Ledger has finalized the open source code for Ledger Recover on GitHub.
The Ledger Recover service, offered through a partnership with blockchain security platform Coincover, is a subscription service allowing users to back up their Secret Recovery Phrase (SRP). This unique 24-word phrase is critical for accessing one's crypto assets. The Ledger wallet encrypts a string of random ones and zeros, which is then used to generate the SRP.
The Ledger Recover service only interacts with encrypted SRP fragments, ensuring the highest level of security. These encrypted fragments are distributed with end-to-end encryption and authentication channels by three separate companies: Ledger, Coincover, and EscrowTech. This approach eliminates single points of failure.
Ledger CTO Charles Guillemet emphasized that Ledger Recover is optional and designed for users who want an extra layer of resilience in case their SRP is lost or damaged. It is initially compatible with Ledger Nano X, with Ledger Stax and Ledger Nano S Plus integration planned for the future. However, it is not compatible with the Ledger Nano S.
Ledger Recover is available to passport or ID card holders in the US, Canada, UK, and EU initially, with plans to expand to more countries and support additional IDs in the future. Ledger underlined that the identity verification process for Ledger Recover is different from the know-your-customer (KYC) checks conducted by centralized crypto exchanges, collecting less personal information.
The Ledger Recovery service is offered at a subscription price of $9.99 per month, and failure to pay will lead to subscription suspension, with the possibility to reactivate within the next nine months along with a €50 administration fee.
The launch of Ledger Recover comes after Ledger temporarily halted the service earlier this year due to community backlash. It was relaunched once the open source code was made available. It's worth noting that Ledger's competitor, Trezor, chose a different approach by offering a physical backup solution with its mnemonic recovery tool, Trezor Keep Metal.
