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01 - Solution Scenario

Wallet Recovery: Reduce Irrecoverable Account Loss

JIL improved onboarding and reduced account loss using modern authentication patterns and secure vault controls.

02 - Engagement profile

Scenario at a glance.

Scenario Profile

Wallet Provider (Scenario)

Region

Global

Industry

Wallet / Consumer Access

Products Used

Wallet + SDV + Passkeys

03 - Benchmark and modeled impact

Benchmark-based analysis.

Public-benchmark inputs paired with the JIL control surface that addresses each one. Modeled impacts are derived from public benchmarks and the control changes enabled by JIL Sovereign.

Industry Benchmark (LexisNexis)

The total cost of fraud/abuse exceeds direct loss due to operations and remediation (true cost dynamic).

Mechanism

Passkeys + recovery-first flows + step-up on high-risk actions + event receipts.

Modeled Impact

Recovery-first onboarding can reduce recovery-related support burden by 15-45% (modeled).

Savings Formula

Estimated cost avoided = support + recovery workload cost x (15-45%).

Evidence Produced

Auth events + action receipts + exportable evidence.

$16.6B
FBI IC3 2024 Total Losses
$2.77B
BEC Losses (21K complaints)
79%
Orgs Hit (AFP 2024)
$4.60
Per $1 Fraud (LexisNexis)
04 - Why JIL wins
Modern finance wins because recovery works. JIL makes self-custody survivable. JIL Sovereign Technologies, Inc.
05 - Problem and expected outcomes

What changed, and what was measured.

Problem

Seed phrase failure and recovery friction caused permanent user loss and support overload.

Expected outcomes
  • Reduced irrecoverable account incidents (target KPI)
  • Decreased key-loss support tickets
  • Improved onboarding completion rate
06 - The industry problem

Why this problem persists

Seed phrase-based wallets create a paradox: the security model that protects users from third-party access is the same model that causes permanent account loss when users lose their recovery phrase. Support teams are overwhelmed by irrecoverable accounts. In this scenario, the wallet provider was losing a measurable percentage of new users who abandoned onboarding at the seed phrase step. Of those who completed onboarding, a significant number eventually lost access permanently due to lost or damaged recovery phrases.

07 - How JIL solves this

The JIL approach

JIL replaced seed phrases with MPC 2-of-3 threshold signing and WebAuthn passkeys. Users authenticate with biometrics. Recovery uses guardian-based social recovery (2-of-5 approvals + 24-hour timelock). No single point of failure. The onboarding flow eliminated the seed phrase step entirely - users set up a passkey with their device biometrics and designate recovery guardians. Key material is split across three parties (user device, cloud backup, and JIL cosigner) so that no single party can access funds alone, but any two can authorize transactions.

Scenario parameters

CorridorConsumer wallet onboarding and recovery
Monthly VolumePilot cohort
Risk ClassMedium
IntegrationsWebAuthn + biometric auth + guardian network
Evidence OutputsRecovery log + guardian approvals + timelock evidence
08 - Receipts and proof produced

Every settlement event produces verifiable evidence.

Evidence artefact

Settlement Receipt

Evidence artefact

Intent Attestations

Evidence artefact

Policy Log

Evidence artefact

Audit Export

09 - Before vs after

The control surface, compared.

Before JIL
  • Seed phrase dependency
  • Permanent account loss
  • High support ticket volume
  • Poor onboarding completion
After JIL
  • Passkey authentication
  • Guardian social recovery
  • Reduced support tickets
  • Higher onboarding completion
10 - What made the difference

The control mechanics that moved the metric.

MPC 2-of-3

no single point of failure for key management

WebAuthn passkeys

biometric authentication without passwords

Guardian recovery

2-of-5 social recovery with mandatory timelock

Secure Data Vault

encrypted document backup for recovery artifacts

11 - Deployment path

Deployment path

Expand passkey support to all device types, add institutional guardian options for enterprise accounts, and integrate with hardware security modules for high-value wallets.

12 - Engagement

Begin a principal-level conversation.

These scenarios demonstrate deployed JIL capabilities against documented industry problems. The reference mainnet runs 301 production services across 10 active SCN validators today, scaling to 20 active with 20+ standby across 13+ jurisdictions, executing the full 175-check production catalogue with under-two-second pre-settlement verdicts.

Disclosure. Benchmark-Based Modeled Impact: The "Modeled impact" estimates above are derived from public benchmarks and the control changes enabled by JIL Sovereign. Actual outcomes vary by corridor coverage, policy configuration, counterparties, and operating environment.