Ledger launches a cloud-based private key recovery solution, ‘Ledger Recover’

• Ledger Recover is a new paid service that backs up encrypted fragments of a user’s Secret Recovery Phrase (SRP) across multiple companies to prevent single point of failure.
• It works by dividing the SRP into 3 fragments, encrypting them and distributing to Ledger, Coincover and EscrowTech. Recovering the SRP requires fragments from all 3.
• The service is currently limited to Ledger Nano X users in the US, Canada, UK and EU. More countries and device support coming soon. There’s a monthly or annual fee and reactivation fee if subscription lapses.

Hardware wallet company Ledger has launched a new cloud-based private key recovery service called Ledger Recover despite facing criticism from some in the crypto community. The tool aims to provide an extra layer of protection for users’ Secret Recovery Phrase (SRP), which gives access to crypto assets.

What is the Ledger Recover Service?

Ledger Recover is an optional, paid subscription service that backs up encrypted fragments of a user’s SRP. It does not interact with the SRP directly. The fragments are distributed across Ledger, Coincover and EscrowTech using end-to-end encrypted channels. This removes any single point of failure.

How Does Ledger Recover Protect Keys?

Ledger Recover divides the encrypted string of random numbers that makes up a user’s SRP into three fragments. Each fragment on its own is useless. To recover the SRP, all three fragments from the different companies are required. No single company ever has access to the full SRP.

Identity Verification vs KYC

Ledger says the identity verification required is not the same as centralized exchange KYC. It requires much less personal information – only a valid government ID. Full KYC can include income, citizenship and criminal records.

Availability and Compatibility

At launch, Ledger Recover works with Ledger Nano X. Support for Ledger Stax and Nano S Plus is coming soon. It is not compatible with the Nano S. Availability is currently limited to the US, Canada, UK and EU. More countries will be added over time.

Cost and Fees

The service costs $9.99 per month or $120 annually. A $50 fee applies if subscription lapses and needs to be reactivated.

Conclusion

Ledger Recover provides users another option to back up their SRP and private keys. It faces criticism from some crypto community members but the company emphasizes it is entirely optional to use the service.