Ledger re-launches "wallet recovery" service, online comments: assets may be confiscated by the government

In May this year, the well-known hardware wallet manufacturer Ledger faced strong criticism from the community for its plan to launch the "wallet recovery" service, which was soon suspended. On October 24, it announced the re-launch of this feature, which allows users to encrypt backup recovery phrases, sparking discussions once again.

Ledger Relaunches "Wallet Recovery" Subscription Service

According to previous reports, Ledger's mnemonic recovery feature is an optional subscription service priced at 9.9 euros per month. By entrusting encrypted mnemonics to different third-party institutions, it helps users regain wallet control through identity verification in case of lost mnemonics.

What Happens If You Stop Subscribing?

Ledger states that after seven days of subscription expiration, the "Wallet Recovery" service will be unavailable. If payment is not made regularly within three months, the subscription will be suspended. To restore the subscription, users need to proactively contact Ledger within nine months.

Your Assets May Be Seized by the Government

Since the "Wallet Recovery" subscription service involves third-party institutions holding your mnemonics, there is a discussion among netizens that under Ledger's willingness or government request, these third-party institutions may cooperate, leading to the possibility of funds in cold wallets being confiscated.

Ledger: This Is an Optional Service

Ledger informs users that the "Wallet Recovery" subscription service is optional, and users can choose according to their personal needs.

As a leading provider of hardware cold wallets, Ledger is making more efforts to expand its user base and meet demand. However, this also tests the blockchain values of existing users. For cold wallet users, "self-custody" is the most fundamental requirement. Although "Wallet Recovery" is not mandatory, it has created negative feelings about the brand.