Crypto hardware wallet manufacturer Ledger has rolled out a new feature called Ledger Recover, which allows users to back up their recovery seed phrases.
Meanwhile, the initial announcement saw pushback from the crypto community, who criticized the service, with the formal launch still not welcome by users.
Ledger Recover Goes Live
Ledger announced the launch of its new optional subscription-based seed recovery service on X called Ledger Recover, provided by the blockchain protection firm Coincover. The new feature is currently available on Ledger Nano X, with the service expected to launch soon on other Ledger devices.
According to the Ledger Recover FAQ,
“Ledger Recover is designed for users who want to add an enhanced layer of security in case their Secret Recovery Phrase is lost or when they can’t access it.”
With Ledger Recover, users’ private keys are encrypted and fragmented into three pieces. The fragments are thereafter “securely distributed” to three independent companies, namely Ledger, Coincover, and EscrowTech.
Meanwhile, Ledger users who are interested in the new update will subscribe for free in the first month and subsequently pay €9.99 monthly using Visa and Mastercard to access the feature.
Customers will also need to provide a valid ID document and selfie recording to verify their identities. According to Ledger, ID verification is a less complicated process and collects less information compared to Know Your Customer (KYC) procedures.
Pascal Gauthier, CEO of Ledger, said that the new feature provides a solution for crypto users who do not have to be burdened with remembering their seed phrases.
“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.”
More Criticisms Trail Ledger Recover Launch
The Ledger Recover launch has, however, come under more criticism from users and the broader crypto community, some of whom were surprised that the firm went through with the launch despite previous pushback.
As previously reported by CryptoPotato, users expressed concern about how Ledger’s recovery service could leave their private keys vulnerable, with other allegations stating that the offering was a backdoor. The mounting criticism at the time caused Ledger to postpone the Ledger Recover launch.
Meanwhile, most of the commenters on X did not seem pleased with the new feature, stressing that it put customer funds at risk. Some others said they would dump Ledger and advised people not to subscribe to the service.
Ledger Recover, provided by Coincover, is launching today! https://t.co/JRl4cLn2tQ
What does this mean, how does the service work, and who is it for?
Scroll down to learn more and sign up pic.twitter.com/Vhdearb5o7
— Ledger (@Ledger) October 24, 2023
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