Ledger Recover explained: how the 3 encrypted fragments, the ID checks and the subscription work, per Ledger's own documents
Ledger Recover explained: shards, ID and fees
Ledger Recover is an opt-in subscription, provided by Coincover, that encrypts a copy of the seed inside the device, splits it into three fragments held by Coincover, Ledger and EscrowTech, and releases two of them after two independent identity checks. Unpaid subscriptions are suspended after 3 months and fragments deleted after 9 more.
Piece published Reviewed by CryptoGuardz Register Desk, editorial desk
Ledger Recover is an opt-in subscription, run by Coincover, that encrypts a copy of a Ledger device's seed inside the device's secure element, splits it into three encrypted fragments, and sends one each to Coincover, Ledger and EscrowTech. To restore, two of the three fragments come back after the user passes two independent identity checks. Ledger's shop page, read on 14 October 2026, offers one month free.
Everything below comes from Ledger's and Coincover's own pages, read on 14 October 2026. The price is stated two ways: Ledger Academy says US$9.99 a month, and the shop's product data shows US$99.99 with a "/year" suffix, which matches the shop's "2 months off" annual bundle. A second shop listing at US$49.99 carries no billing period. Which price applies to a new subscriber is not verified.
How does Ledger Recover work?
Ledger Academy's explainer, updated 9 April 2026, describes the backup in three moves. First, "the secure element duplicates, encrypts, and splits an encrypted version of the seed phrase" into three fragments, after the user physically consents on the device. Second, the fragments travel through "three independent secure channels" to the backup providers:
The three companies include Coincover, Ledger, and Escrowtech.
Each provider holds its piece on "a hardened, tamper-resistant server called a Hardware Security Module (HSM)", and "no single company has access to the entire backup: each fragment is completely useless by itself." Third, on recovery, "two of the three parties will send back their fragments to your Ledger signer", where they are decrypted and "reconstitute your seed phrase."
The shop page puts it differently: "Each piece is stored in HSMs by 3 independent companies across 3 countries", and, a few lines on, "Your private keys, however, never leave your Ledger device." Both statements sit on Ledger's own pages. The academy text is the more exact one: an encrypted form of the seed, from which the keys derive, does leave the device, in three pieces.
What the documents say, item by item
| Item | Ledger or Coincover document | What it says |
|---|---|---|
| Fragments | Ledger Academy | 3, one each to Coincover, Ledger, EscrowTech |
| Needed to restore | Ledger Academy | 2 of 3 |
| Storage | Ledger Academy | HSM at each provider |
| ID to subscribe | Ledger shop page | Passport or national ID; driving licence for US and Canada |
| ID to restore | Ledger shop page | Verified "by two independent companies" |
| Opt-in | Ledger Academy | Explicit consent on the device |
| Free trial | Ledger shop page | One month |
| Price | Ledger Academy; shop product data | US$9.99 a month; US$99.99 a year |
| Billing | Coincover terms, clause 5.1 | Monthly or yearly, in advance |
| Unpaid | Coincover terms | Suspended after 3 months, deleted after 9 more |
| Provider | Coincover terms, clause 2.1 | Digital Asset Services Ltd, England and Wales, 11356137 |
Who checks your identity?
Two providers, separately. The academy page says "Ledger Recover uses your ID and a selfie to verify who you are, via its Identity Verification provider, Onfido." Ledger's September 2023 blog on the identity layer says recovery means "proving your identity to two of the three backup providers through two independent IDV service providers", and includes liveness "checks to make sure a real human is behind the biometrics data and not spoofed." Only then is a share released: "If and only if all these verifications are conclusive, the secured share is finally released for this Backup Provider."
The shop page says availability "depends on the country/region where your identity document is issued." Its FAQ lists the US and Canada (passport, ID card or driver's licence), the EU and the UK (passport or ID card), and 24 further countries and regions by passport only, among them Australia, Brazil, India, Japan, Switzerland and the United Arab Emirates.
Is Ledger Recover opt-in?
Yes, by the academy text: "it must be activated via explicit user consent on the signer itself", and "you don't need to opt in and you don't need to subscribe." Ledger's own wallet terms, as recorded on the Ledger Wallet entry, set the default: Ledger does not hold the 24-word phrase, and "Unless you subscribe to a third-party recovery service, no one is in a position to help you retrieve wallet access."
One feature is outside the backup. Ledger's CEO, in May 2023, wrote that the passphrase feature "is not included in the Ledger Recover backup." A wallet protected by a BIP-39 passphrase needs that passphrase kept separately, as what is a seed phrase explains.
What happens if you stop paying?
The Coincover terms set a schedule. After seven days of failed collection, "you will not be able to use Ledger Recover to restore the encrypted pre-bip39 version" until payment details are fixed. Then: "You will have three (3) months to pay the overdue amount before your Ledger Recover subscription is suspended." After suspension there are "up to nine (9) further months", and if nothing is paid, "your subscription will be cancelled and your encrypted fragments and login details will be deleted." Reactivation carries "an administration fee of 50 EUR." The shop page adds that monthly renewals are "processed in EUR (Euros)."
Why was Ledger Recover criticised?
The criticism is on the record in Ledger's own words. When the service was announced in May 2023, Ledger's chairman and CEO Pascal Gauthier wrote:
We apologise for the way this was communicated.
The same letter called it "our unintentional communication mistake", said Ledger would "accelerate the open sourcing roadmap" and "open source the Ledger Recover protocol", and that Recover "won't be released until this work is complete." On 21 June 2023 Ledger published the Recover cryptographic protocol white paper on GitHub. That post discusses a white paper, not source code for the service.
What identity data does Recover hold?
An ID document scan and a selfie, checked by Onfido and a second provider, tied to the backup at subscription. Ledger has published one earlier customer-data incident of its own, unrelated to Recover: in 2020 it wrote that "approximately 1M addresses" were exposed from its e-commerce and marketing database, and that names, postal addresses or phone numbers "for a subset of 9500 customers were also exposed." Recover did not exist then. No Recover data incident is recorded on the pages read.
For the scams that impersonate wallet support after such a leak, see the Ledger safety page and the self-custody checklist.
Quick answers
How does Ledger Recover work?
The device encrypts a copy of the seed, splits it into 3 fragments, and sends them to Coincover, Ledger and EscrowTech. Restoring needs 2 of 3 plus identity checks by two independent providers.
How much does Ledger Recover cost?
The shop page offers one month free. Ledger Academy states US$9.99 a month and the shop's product data US$99.99 a year; monthly renewals are processed in euros. Which price applies to a new subscriber is not verified.
Do you have to use Ledger Recover?
No. Ledger Academy says it needs explicit consent on the device, and "you don't need to opt in and you don't need to subscribe." Ledger Wallet entry.
What happens to the fragments if you cancel?
Under Coincover's terms, an unpaid subscription is suspended after 3 months, and fragments are deleted if it is not reactivated within 9 further months.
Sources
- Ledger shop, Ledger Recover page, retrieved 14 October 2026
- Ledger Academy, What Is Ledger Recover, published 18 May 2023, updated 9 April 2026, retrieved 14 October 2026
- Ledger blog, Part 4, Genesis of Ledger Recover, identity verification, 7 September 2023, retrieved 14 October 2026
- Coincover, Ledger Recover terms and conditions, retrieved 14 October 2026
- Ledger shop, Ledger Recover redeem code terms, last updated 18 April 2024, retrieved 14 October 2026
- Ledger blog, Ledger Recover, a message from Pascal Gauthier, 23 May 2023, retrieved 14 October 2026
- Ledger blog, Announcing the Ledger Recover Cryptographic Protocol White Paper, 21 June 2023, retrieved 14 October 2026
- Ledger, Addressing the July 2020 e-commerce and marketing data breach, 29 July 2020, retrieved 14 October 2026
- Ledger Wallet terms of use, 4 November 2025, as recorded on the wallet register 2026-09-28
- CryptoGuardz wallet register, Ledger Wallet entry
About this piece
Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.