Ledger emphasised that the ID verifications needed for its private key recovery solution are "much less" information-intensive than KYC verifications.

Ledger, a manufacturer of hardware wallets, is launching its cloud-based private key recovery service despite receiving harsh criticism from the cryptocurrency community.

The company formally announced on X (previously Twitter) that Ledger Recover, an ID-based private key recovery service for the Ledger hardware wallet, will begin on October 24. The launch coincides with Ledger's completion of the Ledger Recover's open-source code on GitHub.

Ledger's seed phrase recovery solution is a premium membership service that enables customers to backup their Secret Recovery Phrase (SRP), which is provided by blockchain security platform Coincover. The private keys are backed up by SRP, a special list of 24 words that grants users access to their crypto assets.

According to Charles Guillemet, chief technical officer of Ledger, Ledger Recover was created for users who "want to add an enhanced layer of resilience" in the event that their SRP is ever misplaced or deleted. Ledger Recover is an optional recovery service, he added, emphasising:

If you choose not to utilise the service, there is no need to worry; it will always be entirely voluntary. Nothing will change, so just carry on using your Ledger as you always have.

At launch, Ledger Recover is compatible with Ledger Nano X, with Ledger Stax and Ledger Nano S Plus connectivity coming in the near future. According to the Ledger Recover FAQ, the solution is incompatible with the Ledger Nano S.

Holders of identity cards or passports in the United States, Canada, the United Kingdom, and the European Union are the first to have access to Ledger Recover.

According to Ledger, "We will be adding support for more documents and covering more nations."

Ledger Recover's identity verification, according to the company, "is not the same" as Know Your Customer (KYC) checks conducted by centralised crypto exchanges. 

Ledger stated that all that is needed for their recovery method is a "valid, government-issued document," adding:

Identity verification naturally gathers a lot less data than KYC [...] ID verification is a part of KYC, but other components include revenue data, criminal histories, citizenship checks, etc.

Ledger Recovery service will be offered for $9.99 each month, or around $120 annually, according to social media posts. 

If a user doesn't pay their subscription, itThe Ledger Recover FAQ states, "You will need to pay an administration fee of 50 EUR along with any outstanding balance."

The launch occurs after Ledger suspended the recovery service in May 2023 due to negative community feedback.

Pascal Gauthier, the CEO of Ledger, later declared that the company would introduce the product following the publication of its open source code.

Trezor, the main rival of Ledger, has refrained from launching a cloud-based private key recovery solution in favour of a physical backup solution. 

In the middle of October 2023, Trezor released its own physical seed phrase recovery tool, Trezor Keep Metal.

will be suspended, however they can reactivate it within the next nine months.

The Ledger Recover FAQ states, You will need to pay an administration fee of 50 EUR along with any outstanding balance."

The launch occurs after Ledger suspended the recovery service in May 2023 due to negative community feedback.

Pascal Gauthier, the CEO of Ledger, later declared that the company would introduce the product following the publication of its open source code.

Trezor, the main rival of Ledger, has refrained from launching a cloud-based private key recovery solution in favour of a physical backup solution.

In the middle of October 2023, Trezor released its own physical seed phrase recovery tool, Trezor Keep Metal.

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