Ledger Launches Cloud-Based Personal Key Recovery Solution

JAKARTA - The Ledger hardware wallet company is launching a cloud-based private key recovery solution despite significant criticism from the crypto community.

Ledger Recover, an ID-based personal key recovery service for Ledger hardware wallet, will launch on October 24. This was officially announced by the company on platform X (formerly Twitter). The launch is in line with Ledger's intention to complete the open source code for Ledger Recover on GitHub.

Provided by blockchain protection platform Coincover, the recovery solution of Ledger seed phrases is a paid subscription service that allows users to back up their Secret Recovery (SRP) Fence. SRP is a unique 24-word list that backs up private keys and gives users access to their crypto assets.

"Ledger Recover is designed for users who "want to add an enhanced layer of resilience" if their SRP is lost or destroyed," said Ledger Chief Technology Officer Charles Guillemet. He also stressed that the Ledger Recover is an optional recovery service.

"If you don't want to use this service, it doesn't matter - it will always be 100% optional. You can continue to use your Ledger like you did before - nothing will change," Guillemet was quoted as saying by VOI from Cointelegraph.

When launched, Ledger Recover is compatible with Ledger Nano X, with the integration of Ledger Stax and Ledger Nano S Plus coming soon. This solution is not compatible with Ledger Nano S, according to FAQ Ledger Recover.

Ledger Recover was originally available to passport holders or identity cards in the United States, Canada, United Kingdom, and the European Union. "We will cover more countries and add support for more documents," Ledger said.

The company emphasizes that the identity verification of Ledger Recover is "not the same" as the Get to Know Your Client (KYC) examination conducted by a centralized crypto exchange. Ledger noted that his recovery system only requires "legitimate documents issued by the government."

"Identity verification inherently collects far less information than KYC... KYC involves ID verification but it can also include income information, criminal activity records, citizenship checks, etc."

According to social media posts, the Ledger Recovery service will be available at a price of 9.99 US dollars (Rp157 thousand) per month, or about 120 US dollars per year. If the user fails to pay the subscription, the subscription will be discontinued, allowing users to reactivate the subscription within the next nine months.

"Users will need to pay an administrative fee of 50 EUR along with a balance that still has to be paid," said FAQ Ledger Recover.

The launch comes months after Ledger suspended recovery services in May 2023 in response to criticism from the community. Ledger CEO Pascal Gauthier later said the company would launch the product once the source code was released.

Ledger's biggest competitor, Trezor, has distanced himself from introducing cloud-based private key recovery solutions, opting for a physical backup solution. Trezor launched his own physical seed phrase recovery tool, Trezor Keep Metal, in mid-October 2023.