Ledger has been through some rough times recently, as we all know.
It suffered a DDoS attack which led to the loss of data of some users, it was criticized for its policy of retaining user data (according to many, accessible to third parties) and finally there are obvious transparency problems since they were never neither published financial statements nor the number of users using their products.
Months later, Ledger is back in the news by launching Ledger Recover, a new seed recovery service based on an optional subscription in collaboration with the Coincover company. Currently, it is already available on Ledger Nano X, but will soon be available on all of the company's products.
Basically, users' private keys are encrypted and fragmented into three parts. The shards are then “securely” distributed to three independent companies (Ledger, Coincover, and EscrowTech).
The service is free for the first month, while after that it will cost around €10 per month, you can pay by credit card and you will need to provide a valid identity document and selfie (but less information than the KYC).
However, on X, most users raised a lot of criticism in this regard, underlining how customer funds were put at risk.
How come?
Simple, data is much more vulnerable. You are literally giving your private keys to these companies that can fall into the hands of an attacker even through hacking attacks, plus this also increases the exposure to phishing attacks.
In short, paying for a subscription like this is an aspect that is must be evaluated very carefully, clearly everyone makes their own choices and considerations.
The safest choice is always to use a hardware wallet where only we are the owners of the keys, which we can keep safe ourselves and which we do not share.
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