An error in Phantom Wallet’s latest iOS update has caused some users to lose access to their crypto funds. The issue began on November 13, affecting a limited number of iOS users.
Some users have been unable to access their cryptocurrency funds as a consequence of a technical malfunction in the most recent Phantom wallet iOS update.
Phantom Wallet iOS Update Issue
Phantom has disclosed that the incident, which commenced on November 13, 2024, has had an impact on a “limited number of iOS users,” although the precise number remains undisclosed.
The issue arose when the new update unexpectedly reset users’ wallets, necessitating that they register back in using their recovery phrases.
The abrupt reset caught many users off guard, and they were unable to access their funds because they had not properly stored their recovery phrases.
The magnitude of losses reported has been inconsistent, with one user asserting that they have lost access to $600,000 in cryptocurrency.
Other users who have been impacted have reported losses that range from $10,000 to $100,000, which has led to demands for compensation from the wallet provider.
Phantom functions as a non-custodial wallet, which implies that it does not retain users’ recovery phrases or have direct access to their funds.
This configuration provides users with complete control over their assets, but it also positions the responsibility of securing recovery phrases entirely in their hands.
In order to mitigate the potential impact of the flaw on additional users, the organization has promptly implemented an update.
Phantom has also extended an apology to the affected users and urged them to reach out to their support team for assistance.
Phantom underscored their dedication to averting comparable incidents in their subsequent announcement.
Despite the absence of specific information regarding preventive measures, the organization declared, “We are dedicated to ensuring that this does not occur in the future.”
Phantom has encountered numerous technical complications in recent months; this is not the first instance. The wallet encountered nearly three hours of outage in late October during the Grass token airdrop.
Users reported encountering issues with transactions and incorrect balances during that incident, which Phantom attributed to the high demand on the backend system.
The most recent incident has underscored the persistent obstacles that users encounter when managing recovery phrases, which are necessary for accessing non-custodial wallets.
The loss of these phrases effectively results in the loss of access to all assets stored in the wallet, as they serve as the ultimate safeguard for accessing cryptocurrency funds.
The crypto industry has been striving to resolve these obstacles. In 2023, Ledger, a hardware wallet manufacturer, introduced its Ledger Recover service, a paid subscription option that provides users with a secure seed backup solution.
Nevertheless, this service has been the subject of criticism from community members who are concerned about the potential privacy implications.
Organizations such as the DeRec Alliance are currently in the process of developing alternative solutions that are designed to establish open standards for secure recovery through a decentralized approach.
The objective of their protocol is to ensure that private data is not compromised while sharing essential information among designated entities.
The company has established specialized support channels for users who are currently experiencing the Phantom wallet issue.
Phantom’s support team is currently working to aid users who have been affected by the update malfunction; however, their capacity to provide assistance is restricted by the wallet’s non-custodial nature.
Phantom is one of the principal wallet providers in the Solana ecosystem, and the timing of this incident coincides with a period of increased activity. Users are notably affected by any technical issues, as the wallet has become a prominent figure in the Solana blockchain space.
Certain users who have been impacted have utilized social media platforms to communicate their experiences and pursue resolutions. The wallet’s update testing procedures have been met with both criticism and support from the community.
Phantom has recommended that all users ensure that their recovery phrases are correctly backed up as a precautionary measure.
This recommendation is applicable to all wallet users, not just those affected by the present issue, as a standard security practice.
The company has maintained consistent communication with consumers through their official channels and continues to monitor the situation. There has been no indication of a timeline for the potential resolution of the issue for users who have lost access to their funds.
