[HARD][ACCOUNT RECOVERY] Add delayed multi-party recovery for lost embedded and linked wallets

[Obiajulu-gif]

Problem

Wallet loss, compromised devices, and inaccessible embedded-wallet sessions can strand a user from investments, repayments, or ownership records. A support-only account reset would create a dangerous unilateral takeover path.

Scope

• Define recovery states: requested, challenged, cooling-off, approved, executed, cancelled, and disputed.
• Require multiple independent factors such as the current session, verified contact channel, recovery key/guardian, and manual high-risk review.
• Bind recovery to the exact old/new wallet, network, user, reason, nonce, and expiry.
• Add a mandatory delay with notifications to every existing channel and a cancellation path from the old wallet.
• Freeze only high-risk actions during recovery while preserving safe read-only access and required repayments.
• Rebind Stellar ownership references through auditable migration records; never rewrite historical ownership.
• Rate-limit attempts and detect repeated or correlated recovery abuse.

Acceptance criteria

• No support agent or single factor can complete recovery alone.
• Old-wallet proof can cancel a pending takeover before execution.
• Historical transactions remain attributable to their original wallet.
• Concurrent recovery attempts resolve deterministically.
• Every transition is tamper-evident and redacts sensitive evidence.

Required tests

Lost device, compromised email, malicious support actor, old-key cancellation, simultaneous requests, expired approvals, partial provider outage, and audit redaction.

Non-goals

Do not store user private keys or seed phrases.

[unlimitedengineer]

I'd like to work on this issue. I have experience building secure backend systems and authentication workflows, and I'll design the recovery process to meet the security requirements, implement the necessary safeguards, and ensure the solution is thoroughly tested and well documented.

[grantfox-oss]

🦊 GrantFox — @unlimitedengineer has been assigned to this issue as part of the Official Campaign | FWC26 campaign!

Next steps:

1. Open a Pull Request referencing this issue (e.g., Closes #142)
2. Your PR will be reviewed by the Chainmove maintainers

Good luck! Track your progress on GrantFox.