One of the biggest crypto hardware wallet providers is rolling out a new service for users who want to have a backup of their secret recovery phrase.
The secret recovery phrase is used to restore access to crypto wallets in case the hardware device gets lost or destroyed. Without the recovery phrase, users lose access to their funds.
Crypto hardware wallet firm Ledger says the new service, Ledger Recover, will enable the recovery of lost seed phrases.
“Ledger Recover is an ID-based key recovery service that provides a backup for your Secret Recovery Phrase. If you lose or don’t have access to your Secret Recovery Phrase, the service allows you to securely restore your private keys using a Ledger device.”
Critics say the availing of Ledger Recover comes with risks. Says privacy advocate Seth For Privacy on social media platform X,
“If you use this service, you are signing up for simple seizure of funds if Ledger willingly (or unwillingly due to gov pressure) decides to collaborate with one of the other storage providers. Please do not use this service.”
Ledger says the $9-per-month subscription is optional.
“Subscription to Ledger Recover is not automatic. In order to subscribe, you have to pay for a subscription, and approve the creation of your backup on your Ledger Nano X.”
Ledger’s Chief Technology Officer Charles Guillemet says the service is also targeted at certain users.
“Ledger Recover was designed for users who want to add an enhanced layer of resilience in case their Secret Recovery Phrase (SRP) is ever lost or destroyed. Concerns about securing their SRP may cause users to shy away from using a hardware wallet and use less secure options.”
Source : The Daily Hodl / October 27, 2023