2024-11-14
The update caused app resets, and users
had to use their recovery phrases to regain access. Phantom has since released
a new update to prevent further issues and advised users to securely store
their seed phrases.
Crypto wallet provider Phantom has
faced backlash from users after a recent iOS update caused “app resets,”
leaving some locked out of their wallets and unable to access their funds.
The company urged users to secure their recovery phrases, as they are essential to restoring wallets affected by the iOS update.
What Happened?
Phantom, a popular non-custodial wallet
for the Solana blockchain, issued an emergency update following reports that
the app had automatically logged out users after the latest update.
Those who had not backed up their
recovery phrases, also known as seed phrases, were unable to regain access to
their wallets or funds.
"We're aware that a small number
of iOS users are experiencing app resets," Phantom acknowledged on social
media platform X. "We’ve pushed out an update to prevent this from
affecting any additional users."
User Backlash
Despite the emergency patch, affected
users took to social media to report losses:
One user claimed to have lost $1
million in $POPCAT tokens after being logged out of their wallets.
Another user alleged the app wiped 100
wallets, causing massive losses across multiple platforms.
"I just lost my wallet holding
$600K," lamented one user, demanding reimbursement.
The Graphite Protocol founder added to
the criticism, questioning whether Phantom or users are to blame for the losses
and whether affected individuals would receive compensation.
Non-Custodial Wallet Limitations
As a non-custodial wallet, Phantom does
not store users' seed phrases or private keys. This design gives users full
control over their funds but also means the company cannot recover wallets or
reimburse losses if seed phrases are lost.
Previous Issues
This incident marks the second time in
recent weeks that Phantom has faced user frustration. In late October, a glitch
caused inaccurate account balances to display on both its app and browser
extension.
What is Phantom Doing?
Phantom has issued an apology, advised
users to back up recovery phrases securely, and pledged to prevent such issues
in the future. Their status page currently reports "all systems
operational," but concerns remain high among the crypto community.
Affected users are encouraged to
contact Phantom’s support team for assistance, though the company’s ability to
recover lost funds is limited without seed phrases.
What Should Users Do?
•
Back up your seed phrase: Store it securely, ideally in multiple
locations.
•
Update cautiously: Avoid automatic updates and confirm any patch notes.
•
Seek support: Contact Phantom if you encounter issues, but manage
expectations regarding non-recoverable funds.
This is a critical reminder of the
importance of seed phrases associated with non-custodial wallets.
