Hardware wallet manufacturer Ledger has launched an ID-based key recovery service called "Ledger Recover", which has faced opposition from some users.

BlockBeats reported on May 16th that hardware wallet manufacturer Ledger has released the Ledger Nano X firmware (version 2.2.1) update, which introduces a service/function called "Ledger Recover". According to reports, Ledger Recover is an ID-based key recovery service that can provide backup for users' private key recovery phrases. Ledger Recover is currently compatible with Ledger Nano X and can be used on Android and iOS devices running the latest version of Ledger Live. Currently, a passport/national ID issued by the EU, UK, Canada or the US is required to subscribe to the service. In the coming months, more countries will be covered and support for more documents will be added. It is reported that the "Ledger Recover" service divides the wallet recovery phrase (which is essentially a human-readable form of a private key) into three encrypted fragments and distributes them to three custodians: Ledger, cryptocurrency custodian company Coincover, and code custodian company EscrowTech. If someone loses their mnemonic phrase, two of the three fragments can be combined - after identity verification - to regain access to locked funds. According to reports, Ledger Recover is an additional safety net that eliminates the risk of losing cryptocurrency keys for a monthly fee of $9.99. However, some Ledger users strongly oppose this feature because it requires online storage of secret mnemonic phrases associated with a passport or national ID. The feature has faced criticism for requiring KYC registration, with some users saying it goes against the privacy values held by many in the cryptocurrency community and undermines the purpose of a hardware wallet.