Kenne Michael 
Hardware wallet firm Ledger is launching its cloud-based private key recovery solution despite significant opposition from the crypto community.
Ledger Recover, an identity-based private key recovery service for the Ledger hardware wallet, will launch on October 24, the company announced on X (previously Twitter).
The release coincides with the completion of the open-source code for Ledger Recover on GitHub.
Ledger’s seed phrase recovery solution is a paid subscription service provided by the blockchain protection platform Coincover that enables users to back up their Secret Recovery Phrase (SRP).
SRP is a unique list of 24 words that serves as a backup for private keys and provides users with access to their crypto assets.
Ledger Recover was created for users who “want to add an enhanced layer of resilience” in case their SRP is ever lost or destroyed, according to Ledger’s chief technology officer, Charles Guillemet.
In addition, he emphasized that Ledger Recover is a voluntary recovery service, and he added:
“If you don’t wish to use the service, no worries — it’ll always be 100% optional. You can simply continue using your Ledger as you did previously — nothing will change.”
Ledger Recover is compatible with Ledger Nano X at launch, with Ledger Stax and Ledger Nano S Plus integration forthcoming.
The solution is not compatible with Ledger Nano S, per the Ledger Recover FAQ.
Ledger Recover is initially accessible to citizens of the United States, Canada, the United Kingdom, and the European Union with valid passports or identity cards. “We will be covering more countries and adding support for more documents,” said Ledger.
The company highlighted that Ledger Recover’s identity verification “is not the same” as Know Your Customer (KYC) checks conducted by centralized cryptocurrency exchanges.
Ledger explained that its recovery system requires only a “valid, government-issued document,” stating:
“Identity verification inherently collects much less information compared to KYC […] KYC involves ID verification but it can also include revenue information, record of criminal activity, citizenship check, etc.”
According to posts on social media, the Ledger Recovery service will cost $9.99 per month or approximately $120 per year.
If a user fails to pay the subscription fee, the subscription will be suspended, and the user will have nine months to reactivate it.
Ledger Recover’s FAQ states, “You will needs to pay an administration fee of 50 EUR along with any outstanding balance.”
The launch occurred several months after Ledger halted the recovery service in May 2023 due to community backlash.
Consequently, Ledger CEO Pascal Gauthier stated that the company will introduce the product once its open source code is made available.
Trezor, Ledger’s largest competitor, has opted for a physical backup solution instead of a cloud-based private key recovery solution.
Trezor introduced Trezor Keep Metal in mid-October 2023, its own physical seed phrase recovery instrument.