Ledger Unveils Wallet Recovery Tool Amidst Expert Criticism

• Ledger recently released a new wallet recovery tool, called “Ledger Recover”.
• The tool has received criticism from security experts, who are concerned about the transfer of encrypted seed phrases to third parties.
• Despite criticism, Ledger is standing firm on their decision to offer the wallet recovery tool.

Ledger Unveils Wallet Recovery Tool

Ledger, one of the most popular hardware wallet manufacturers in the cryptocurrency realm, recently unveiled a new wallet recovery tool called “Ledger Recover”. It allows users to subscribe and back up their private keys by dividing the user’s seed phrase into three encrypted shards and distributing it to third-party companies.

Backlash From Security Experts

The new feature has not received a positive reception from the community; many security experts have raised concerns about transferring encrypted seed phrases to third parties. Polygon Labs Chief Information Security Officer Mudit Gupta tweeted about it, highlighting the main problem with this idea: sending the encrypted parts to three corporations where they can reconstruct the keys.

Ledger Responds To Criticism

In response to criticsim from security experts and users, Ledger clarified that these companies never have access to the seed phrase as it is not stored in the cloud and that decryption of these three shards can only occur on Leder devices after successful identity verification by users.

Implications Of This Tool

This tool could potentially jeopardize hardware wallets which are touted as one of the safest ways for storing cryptocurrencies. Therefore, it is important for users to be aware of how this service works before opting in for it or using it carelessly without considering its implications.


Despite receiving backlash from some members of the crypto community, Ledger stands firm on its decision to offer this wallet recovery service and has clarified that all data is protected at all times during use of this service. This highlights a need for more research into crypto security tools and services such as this one before utilizing them so that users can make informed decisions when utilizing them safely and securely.

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