I find it hard to believe what I’m reading. It’s absolutely astonishing that a provider of hardware wallets would actually encourage users to back up their seed phrase online and provide their Passport/ID, especially considering their previous data breach. However, in the latest firmware update for Ledger Nano X (2.2.1), they are introducing a service/feature called “Ledger Recover.” Interestingly, the release notes for the firmware are not yet available on their website at the time of writing, but I have attached a screenshot confirming its existence.

Once again, I’m in disbelief about this. Aside from the risk of another potential hack, it contradicts the principle of never sharing or storing your seed phrase online. It also opens the door to a new wave of crypto scammers!

For more information, you can refer to an article from Wired. Additionally, a member of the Ledger forum confirmed that the seed leaves the device. While it may resemble a form of multi-signature security, it still raises concerns for me. Definitely not something I would consider! 

STAY AWAY FROM LEDGERS!!!

“Ledger is getting ready to launch a new service named Ledger Recover, which divides a wallet recovery phrase (a human-readable form of the private key) into three encrypted pieces and distributes them among three custodians: Ledger, Coincover (a crypto custody firm), and EscrowTech (a code escrow company). If a user loses their recovery phrase, they can combine two out of the three encrypted pieces, subject to an ID verification, to regain access to their locked funds. Essentially, Ledger Recover serves as an additional safety net. For a monthly fee of $9.99, it eliminates the risk associated with storing cryptocurrency like hiding dollars under a mattress. Initially, it will be available in the UK, EU, US, and Canada, with plans to expand to other regions later in the year.”