TLDR
- Phantom Wallet's iOS update caused access problems to some users' funds.
- One individual reported a $600,000 loss, while others faced losses from $10,000 to $100,000.
- The glitch impacted a limited number of iOS users, and a new update aims to fix the issue for good.
- As a non-custodial wallet, Phantom cannot intervene directly to retrieve users' funds.
- This issue came on the heels of an outage during the October GRASS token airdrop.
A recent technical glitch in a Phantom wallet iOS update has led to some users being locked out of their cryptocurrency. Since November 13, 2024, Phantom has noted that only a few iOS users have been affected, though exact numbers are not public.
A recent update has unintentionally frozen a significant portion of liquidity within Phantom wallets, humorously termed a 'natural burn event' by some.
The issue arose when the update unexpectedly reset wallets, requiring users to re-enter their recovery phrases. https://t.co/jWeDE87SFT
— 🦄 IWinn🦄 (@iwinn_trades) November 13, 2024
Caught off guard, many were unable to access their accounts due to improperly stored recovery phrases.
Some have reported losses, with one user unable to retrieve $600,000 in crypto.
Others have reported missing between $10,000 and $100,000, leading to demands for reimbursement from Phantom.
I can't believe I've just lost my wallet with $600K, it's everything I've saved.
When am I getting my money back? I need to dive back into the market right away!
Operated as a non-custodial service, Phantom lacks the capability to store or recover users' recovery phrases.
— ebukaar🎭 (@ebukaarcryppted) November 13, 2024
This setup entrusts users with complete asset control while making them solely accountable for their recovery phrase security.
Phantom responded swiftly to the incident, rolling out a fix to contain the bug's spread.
They issued an apology to those affected, suggesting users reach out to support for help.
In the aftermath, Phantom reaffirmed their dedication to averting similar mishaps going forward.
\"We’re committed to ensuring this does not occur again,\" they stated, without specifying how.
Notably, this isn't Phantom's first tech hurdle—they faced downtime during the October Grass token release.
During that time, users noted incorrect balances and transaction issues due to backend pressure from heightened demand.
This incident underscores the persistent challenge of managing non-custodial wallet recovery phrases.
Without recovery phrases, regaining access to stored crypto in such wallets is not possible.
The crypto sector is actively addressing these issues. In 2023, Ledger unveiled a subscription service for secure seed phrase backups but faced privacy backlash.
Organizations like DeRec Alliance are creating open standards for secure, decentralized recovery solutions, aiming to protect private data while sharing vital recovery information.
Phantom's support has opened dedicated channels for assisting those affected, though their aid is limited by the wallet's non-custodial model.
This issue has arisen during a period of heightened activity in the Solana network, where Phantom is a pivotal wallet provider.
Affected users have taken to social media to voice their troubles and seek fixes, receiving mixed reactions of support and review of the wallet's update processes.
Phantom advises all users—not just those impacted—to diligently back up their recovery phrases for security.
Regular updates throughout official channels remain as the company works to solve the current situation, though they haven't offered a timeline for a resolution for locked-out funds.
Oliver Dale is a key figure in the crypto scene, leading the UK's Blockonomi and founding Kooc Media Summit advocating for open-source and fair internet access.
