Ledger’s New Seed Phrase Recovery: Is There a Backdoor ?

• Ledger, a crypto hardware wallet firm, is responding to criticism of their new ID-based seed phrase recovery solution
• Critics believe the product may create a “backdoor” for the company to obtain user data
• Ledger CEO and Chairman Pascal Gauthier says this is not true and that only users can use functions on their ledger

Ledger Introduces New Seed Phrase Recovery Solution

Crypto hardware wallet firm Ledger has introduced a new seed phrase recovery option for customers. The product, “Ledger Recover,” is an optional subscription that encrypts a version of the customer’s private key and splits it into three encrypted fragments. These are stored by different parties on hardware security modules. To recover the seed phrase, customers must go through an ID verification process before those encrypted fragments are sent directly to their Ledger Nano device.

Critics Fear Potential ‘Backdoor’

Mudit Gupta from Polygon (MATIC) Labs argues that anything secured by ID verification is “inherently insecure.” Changpeng Zhao from Binance also criticized the product saying it sounds like something that goes against “your keys never leave your device”.

Pascal Gauthier Responds to Criticism

Ledger CEO and Chairman Pascal Gauthier responded to these critiques on Twitter. He said that having a backdoor would mean they control all ledger devices which is not the case. He stressed that only users can use functions on their ledger and no one else can enter their pin code or press any buttons without permission.

Only Users Have Control Over Their Device

Ledger emphasizes that they have no control over customers’ devices or access to user data. At all times, users will remain in complete control of how their device functions and who has access to it. This includes when using Ledger Recover as well; customers must verify themselves with either an email address or mobile number before being able to unlock their device with its private key shards.


The introduction of Ledger Recover aims to provide better protection for its customers’ private keys in case of loss or theft while still ensuring only users have access and control over their devices at all times.