Key Insights
- Ledger is launching Ledger Recover, a cloud-based private key recovery service, amidst criticism from the crypto community.
- Ledger Recover allows users to safeguard their Secret Recovery Phrase (SRP) with a unique list of 24 words, enhancing security.
- This service is initially available to passport or identity card holders in the US, Canada, the UK, and the EU.
In a bold move that has stirred both curiosity and controversy within the cryptocurrency community, renowned hardware wallet manufacturer Ledger is forging ahead with the launch of its cloud-based private key recovery solution, Ledger Recover.
This groundbreaking service, set to debut on October 24, is poised to disrupt the status quo of crypto security. The announcement was officially unveiled on X, the rebranded platform formerly known as Twitter.
This development coincides with Ledger’s pivotal milestone of finalizing the open-source code for Ledger Recover on GitHub, underscoring the company’s commitment to transparency in the face of ongoing criticism.
What sets Ledger Recover apart is its innovative approach to safeguarding users’ crypto assets. It operates as an identity-based private key recovery system for Ledger’s hardware wallets, designed to add an extra layer of resilience to crypto enthusiasts’ security strategies.
Ledger’s Chief Technology Officer, Charles Guillemet, emphasized that Ledger Recover remains an optional service, reiterating that users who opt not to leverage it can seamlessly continue with their current Ledger practices without any disruptions.
At its launch, Ledger Recover will be compatible with the Ledger Nano X, with integration for Ledger Stax and Ledger Nano S Plus set to follow closely. However, it’s important to note that Ledger Nano S won’t be compatible with this solution, as stated in Ledger Recover’s FAQ.
Ledger Recover’s Rollout and Cost
For those eagerly awaiting its arrival, Ledger Recover will be initially accessible to individuals holding passports or identity cards from the United States, Canada, the United Kingdom, and the European Union. Nevertheless, Ledger has ambitious expansion plans, intending to incorporate additional countries and broaden support for various types of official documents.
Notably, Ledger Recover has drawn a line between its identity verification process and the Know Your Customer (KYC) procedures commonly executed by centralized cryptocurrency exchanges. Unlike KYC, Ledger’s recovery system only necessitates a valid government-issued document, collecting considerably less information.
To utilize the Ledger Recover service, users will be charged a subscription fee of $9.99 per month or approximately $120 per year. It’s crucial to meet these financial obligations, as failure to pay will result in the suspension of the subscription. Thankfully, reactivation will be possible within the following nine months, with the requirement of a €50 administration fee along with any outstanding balance.
The announcement of Ledger Recover’s launch follows a brief hiatus taken by Ledger in May 2023, a decision prompted by a wave of community backlash. During this period, Ledger CEO Pascal Gauthier affirmed the company’s commitment to releasing the product once the open-source code was ready.
It’s worth noting that Ledger’s primary competitor, Trezor, has chosen a divergent path, steering clear of a cloud-based private key recovery solution. Instead, Trezor launched its physical seed phrase recovery tool, Trezor Keep Metal, in mid-October 2023, positioning both companies at intriguing crossroads in the world of crypto security.