Ledger Introduces New Recovery Service Amidst Past Criticisms

Crypto Hardware Wallet Manufacturer Ledger Introduces New Recovery Feature

Ledger, a leading manufacturer of crypto hardware wallets, has launched a new feature called Ledger Recover, which allows users to back up their recovery seed phrases. This optional subscription-based service is provided by Coincover, a blockchain protection firm, and is currently available on Ledger Nano X devices, with support for other Ledger devices coming soon.

According to the Ledger Recover FAQ, this feature is designed for users who want to add an enhanced layer of security in case their Secret Recovery Phrase is lost or inaccessible. With Ledger Recover, users’ private keys are encrypted and fragmented into three pieces, which are then securely distributed to three independent companies: Ledger, Coincover, and EscrowTech.

To access the Ledger Recover feature, interested users can subscribe for free in the first month and subsequently pay €9.99 monthly using Visa and Mastercard. In addition, customers will need to provide a valid ID document and a selfie recording to verify their identities. Ledger assures users that the ID verification process is less complicated and collects less information compared to Know Your Customer (KYC) procedures.

Pascal Gauthier, CEO of Ledger, explained the benefits of this new feature, stating, “Let’s be clear: too many people have lost their digital assets because they’ve lost their Secret Recovery Phrase. This risk stops people from using crypto, and certainly from using self-custody. Ledger Recover is the solution you need to stop worrying about getting locked out of your own Ledger.”

Mixed Reactions from the Crypto Community

Despite the launch of Ledger Recover, the new feature has faced criticism from users and the broader crypto community. Concerns were raised about the potential vulnerability of private keys and allegations that the offering was a backdoor. In fact, the initial announcement of the service was met with pushback, leading Ledger to postpone the launch.

Many commenters expressed their dissatisfaction with the new feature, emphasizing that it puts customer funds at risk. Some even stated their intention to stop using Ledger and advised others not to subscribe to the service.

It remains to be seen how Ledger will address these concerns and whether the Ledger Recover feature will gain wider acceptance among crypto users.