What is Ledger Recover?
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.
Why do I need Ledger Recover?
You're responsible for storing your Secret Recovery Phrase. While this setup makes you enjoy all the benefits of self-custody and complete control over your assets, it also makes you solely responsible for their protection. Ledger Recover is designed for users who want to add an enhanced layer of security in case their Secret Recovery Phrase is lost or when they can't access it.
Who has access to my wallet with Ledger Recover?
In short, only you can access your wallet. When you subscribe to Ledger Recover, a pre-BIP39 version of your private key is encrypted, duplicated and divided into three fragments, with each fragment secured by a separate company—Coincover, Ledger and EscrowTech. Each of these encrypted fragments is useless on its own. When you want access to your wallet, two of the three parties will send fragments back to your Ledger device, reassembling them to build your private key.
Does Ledger Recover compromise the security of my private key?
No, it doesn't. Ledger Recover service follows the same principle as signing the transaction on a blockchain—securely and only with your permission. No access to your private key is made to enable Ledger Recover to work.
To better understand this, let's go back to the basics and see how hardware wallets—which can be described as signing devices—work.
Hardware wallets have two primary purposes: to safeguard your private key and sign transactions on the blockchain. To sign the transactions, wallets need to access your private key. They can't sign transactions otherwise.
Ledger devices protect your private key with a Secure Element, a technology that has been battle-tested and used in the finance industry for 30 years, from storing passwords and fingerprints to processing contactless payments.
Ledger's operating system allows access to the private key stored within the Secure Element, but only after you manually approve and confirm it. To learn more about how the process works behind the scenes, readthis explanationfrom Ledger's CTO Charles Guillemet and check outhis interview about wallet security. For a technical explanation of how Ledger Recover operates,see Charles Guillemet's tweet.
What would happen to my Ledger Recover subscription and related data if one of the companies goes out of business?
To restore your keys, you need two out of three fragments that are securely kept by the three independent and trusted companies. If one of the companies holding a fragment shuts down, you will still be able to restore your keys until another trusted company replaces it.
What should I do with my recovery sheet once I subscribe to Ledger Recover?
Ledger Recover can restore your private keys to your device, but it can't provide you with your Secret Recovery Phrase. If you have any other physical/digital copies of your recovery sheet or Secret Recovery Phrase, it's your responsibility to secure them. Keep in mind that anyone who obtains your Secret Recovery Phrase can access your wallet.
What is a Secret Recovery Phrase (SRP) or a seed phrase?
Secret Recovery Phrase (SRP) is a unique list of 24 words that backs up the private keys and gives you access to your crypto assets. Learn more →What is a Secret Recovery Phrase?
How does Coincover handle subpoenas/warrants from governmental agencies under Ledger Recover?
Coincover will never pass your information to a third-party unless it has a legal obligation to do so. For example, law enforcement agencies often have extensive criminal investigation powers, including the ability to obtain production orders requiring information to be produced. It may result in a criminal offence for any entity supporting Ledger Recover to fail to comply with a production order, but Coincover would always take all reasonable steps to verify a production order before complying with it.
You should also note that the Recovery Seed Phrase (RSP) is encrypted and split into three fragments – all of which are held by independent companies established in separate legal systems. Since a minimum of two of three fragments would be required to gain access to your wallet, it is likely that an order would need to be obtained in at least two jurisdictions. These individual fragments are not exploitable on their own. Two of them would need to be recombined and decrypted with separate keys. Any order of this nature would realistically only ever be obtained in the most serious cases of criminality (such as where terrorist financing is suspected).
Coincover will never be able to access your seed phrase. Coincover or the other backup providers will only ever manage one encrypted fragment. We do not hold nor have access to the other fragments that make a complete seed phrase.
