Ledger Crypto Wallet Under Fire Over Seed Phrase Recovery Service

Hardware wallet provider Ledger's release of its "idbase" key recovery service, requiring users to provide their passport or national identity card to confirm their identity and three encrypted fragments, has caused concern online due to potential security risks.

While Ledger claims the service is safe, users must opt-in and pay a monthly fee, and some worry that this could still pose a security risk. Additionally, a hacker could possibly use the service to steal a user's recovery phrase and expose their funds. Ledger has reassured users that the process is secure, and it includes full liveness detection and review by both technology and humans.