Controversial Ledger Key Recovery Service Paused Amid Backlash

Controversial Ledger Key Recovery Service Paused Amid Backlash

Ledger, the renowned cryptocurrency hardware wallet manufacturer, has announced the temporary pause of its controversial key recovery service following severe backlash from the crypto community. The company also revealed its plan to open-source the code underlying the service, aiming to restore faith and transparency among its user base.

Ledger’s key recovery service, introduced earlier this year, intended to provide users with an additional layer of security by allowing them to regain access to their funds in case of lost or forgotten private keys. However, the service’s implementation raised concerns among cryptocurrency enthusiasts, who feared that it compromised the fundamental principles of decentralization and self-custody.

Ledger CEO Pascal Gauthier expressed that the previous week had been a humbling journey and extended his apologies for the company’s miscommunication.

Postponement of Ledger Recover: A humbling lesson in communication

Following a week of intense criticism from the crypto community, hardware wallet company Ledger has made the decision to postpone the launch of Ledger Recover. During a Twitter Spaces session on May 23, attended by over 13,000 users, Ledger’s chairman and CEO, Pascal Gauthier, acknowledged that it had been a humbling experience and a valuable lesson in effective communication.

“This experience has been very humbling. We miscommunicated on the launch of this product; it was not our intention to take people by surprise. So because of that, we understand the community’s direction and apologize for the miscommunication.”

Gauthier announced that, in light of the concerns raised, the company would expedite its efforts to open-source a larger portion of its codebase. This initiative will begin with the core components of its operating system and Ledger Recover, which Gauthier emphasized would not be released until this process is thoroughly finalized.

Enhancing Transparency: Open-Sourcing recovery protocol and providing technical explanations

According to Charles Guillemet, the Chief Technology Officer of Ledger, in the upcoming days, they will make the Recover Protocol’s white paper available as open source. Additionally, technical blog posts will be published to elucidate the principles of Recover and provide comprehensive explanations of the process mechanics.

“It’s going to be very easy and clear for every single cryptography and security expert to have a look at the protocol to get more guarantees and understand how it works.”

Guillemet highlighted that this approach would enable developers to create their own backup provider for the seed phrase shards instead of relying on the backup provider offered by Ledger. “This has always been something important for Ledger, but this recent event showed how important it is for the community, and is why we decided to prioritize this open-sourcing process.”

Advancing Open Source Initiative: Striving for transparency comparable to Raspberry Pi

In a recent statement to Cointelegraph, Ledger expressed its commitment to progressively open-source a larger portion of its code, aiming to achieve a level of openness similar to that of the Raspberry Pi.

Ledger faced a public relations crisis when it unveiled its intentions on May 16 to introduce Ledger Recover, a key recovery tool. This firmware update aimed to offer users an optional feature to retrieve their lost private seed phrase.

The company encountered strong opposition from certain segments of the crypto community, as they believed that this implementation could create a potential “backdoor” for extracting a user’s private keys from the device.


In conclusion, the decision of the Ledger recovery feature paused and open-sourced the underlying code reflects a response to the intense backlash from the crypto community. The company acknowledges the concerns raised and aims to rebuild trust by prioritizing transparency and community engagement. While some applaud Ledger’s commitment to openness, others remain skeptical, advocating for a complete abandonment of centralized key recovery.

The future of Ledger’s key recovery service remains uncertain, and users and experts eagerly await the next steps from the company. This incident highlights the growing importance of decentralization and user-centric solutions within the cryptocurrency industry.

Also Read: Former CFTC Commissioner suggests ETH can both be Security and Commodity.

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