For now yes. We plan to use multiple keys that can recover ID from compromise. The funds would still be lost though.
https://github.com/memocash/mips/blob/master/mip-0003/mip-0003.md
Generate BIP39 mnemonic, use that as seed to derive m/44'/145'/x' where x' is the service. Forget the root master and use the Memo pass to encrypt the XPRV of this account.
