Ledger Launches Cloud-Based Private Key Recovery Tool

Introduction

Hardware wallet firm Ledger is rolling out its cloud-based private key recovery solution despite facing significant criticism from the crypto community.

Ledger Recover: An Enhanced Layer of Resilience

Ledger Recover, an ID-based private key recovery service for the Ledger hardware wallet, is launching on Oct. 24. The release comes in conjunction with Ledger finalizing the open-source code for the Ledger Recover on GitHub.

Ledger Recover is designed for users who "want to add an enhanced layer of resilience" in case their Secret Recovery Phrase (SRP) is lost or destroyed. The SRP is a unique list of 24 words that backs up the private keys and gives users access to their crypto assets.

According to Ledger's chief technology officer Charles Guillemet, Ledger Recover is an optional recovery service. Users who choose not to use the service can continue using their Ledger as they did before.

Compatibility and Availability

At launch, Ledger Recover is compatible with Ledger Nano X, with Ledger Stax and Ledger Nano S Plus integration coming in the near future. The solution is not compatible with Ledger Nano S.

Ledger Recover is initially available to passport or identity card holders in the United States, Canada, the United Kingdom, and the European Union. Ledger plans to expand coverage to more countries and add support for more documents.

Identity Verification and KYC

Ledger emphasized that Ledger Recover's identity verification is not the same as Know Your Customer (KYC) checks carried out by centralized crypto exchanges. Ledger's recovery system only requires a valid, government-issued document, collecting much less information compared to KYC.

Pricing and Subscription

According to social media posts, Ledger Recover will be available at $9.99 per month or about $120 per year. If a user fails to pay the subscription, it will be suspended, allowing the user to reactivate the subscription in the next nine months. An administration fee of 50 EUR will be required along with any outstanding balance.

Community Backlash and Competition

The rollout of Ledger Recover comes months after Ledger paused the recovery service in May 2023 due to community backlash. Ledger's largest competitor, Trezor, has chosen to offer a physical backup solution instead of a cloud-based private key recovery tool.