Losing your recovery phrase means losing your funds. Ledger Recover offers an optional way to restore access without keeping the phrase yourself.
Ledger Recover encrypts and splits your recovery phrase into fragments held by separate custodians. With your identity verification, the fragments can be reassembled to restore your wallet.
The service sparked controversy because it involves sharing encrypted fragments of your phrase with third parties, even though the phrase itself is never fully held by any one party.
Ledger Recover is opt-in. If you prefer full self-custody, you can simply not use it and continue managing your phrase yourself.
It is aimed at people who worry about losing their phrase and want a safety net, at the cost of some privacy trade-offs.
Ledger Recover is a useful option for some users, but it is not for everyone. Decide based on your own comfort with the trade-offs.