Ledger Launches Distributed, KYC-Based, Cloud Seed Recovery Service Then Quickly Deletes It
Previous articles state that Ledger Recover service splits a wallet recovery phrase into three encrypted shards and distributes them to three custodians. The service is supposed to cost $9.99 per month.
"Starting today, you can subscribe to Ledger Recover," said the currently removed announcement.
"Ledger Recover is an ID-based key recovery service that provides a backup for your Secret Recovery Phrase."
"Ledger Recover is currently compatible with Ledger Nano X and available on Android and iOS running the latest Ledger Live version."
"At the moment, a passport/national identity card issued by the European Union, the United Kingdom, Canada, or the United States is required to subscribe to the service. We will be covering more countries and adding support for more documents in the coming months. Stay tuned."
The update link now leads to the page for firmware v 2.1.0, which was released on February 13.
Ledger CEO Pascal Gauthier has previously shared an update about the upcoming feature on Twitter on May 2, 2023, stating that:
"If we're going to bring millions of people into crypto securely, you need a more user-friendly way to use self-custody. That's why we're excited to say that our new service, Ledger Recover, is coming soon... stay tuned."
The CEO also shared a link to a WIRED article, in which the company announced the forthcoming launch of Ledger Recover, as well as more details on how the service is supposed to work.
"Ledger is preparing to launch a new service called Ledger Recover that splits a wallet recovery phrase - basically, a human-readable form of the private key - into three encrypted shards and distributes them to three custodians: Ledger, crypto custody firm Coincover, and code escrow company EscrowTech."
"If somebody loses their recovery phrase, two of the three shards can be combined - pending an ID check - to regain access to the locked funds."
"Essentially, Ledger Recover is an additional safety net; for the price of $9.99 a month, it takes the jeopardy out of crypto’s version of stuffing dollars under the mattress. It’ll be available in the UK, EU, US, and Canada and come to other territories later in the year."
“A lot of people say they cannot enter crypto because they can’t manage the recovery phrase. It’s the industry problem. Making that pain point go away will trigger a lot more people to join the space,” Gaunthier was quoted as saying.
"Ledger Recover is a service, he says, not a feature - one that provides all the niceties and safety mechanisms regular people are looking for."
"The fragments of the recovery phase are encrypted and stored by each custodian on specially secured servers, and the balance of the user’s wallet is covered up to a value of €50,000 ($55,000) if something goes awry, a little like deposit insurance at a bank. It’s also being designed with a less technical user in mind," states the Wired article.
The article also praises Ledger's Chief Experience Officer Ian Rogers, who is said to be aiming at bringing Apple-like experience to Ledger products.
"Ledger is reading from the book of Steve Jobs, working backwards from the end goal—mass adoption of self-custody wallets—to identify the necessary steps to get there."