A recent update to the Solana-based Phantom wallet has left several iOS users unable to access their funds due to a significant glitch. On November 13, 2024, reports began pouring in from users whose wallets had been reset, forcing them to log back in using their recovery phrases. This has caused confusion and panic among users, with some claiming to have lost amounts ranging from $10,000 to $600,000.
This incident highlights the vulnerabilities associated with non-custodial wallets, where users retain control of their private keys but also carry the sole responsibility for their security. When the wallet reset occurred, many users found themselves locked out of their accounts, prompting an urgent call for Phantom to reimburse the affected parties. However, Phantom, while acknowledging the problem, pointed out that as a non-custodial wallet provider, they do not store users’ recovery phrases or have access to individual funds.
The fallout from this glitch was immediate. Users expressed their concerns on social media, demanding urgent remedies from Phantom. While the company stated that only a small number of iOS users were affected, the exact number has not been disclosed. In a subsequent announcement, Phantom reassured its user base that they had released an update aimed at preventing the recurrence of this glitch.
Phantom officially apologized to users and reminded them of the importance of securely backing up their recovery phrases. The company has encouraged anyone facing issues to reach out to their support team for assistance. Their commitment to enhancing the user experience was reaffirmed with the statement: “We’re committed to making sure this won’t happen again.”
This incident sheds light on a broader issue within the crypto community regarding the management of recovery phrases. Many users—especially those less experienced with technology—struggle with backing up their phrases correctly. This has inspired some to seek out recovery services, similar to traditional finance backup options.
Hardware wallet manufacturers, such as Ledger, have introduced subscription-based services like Ledger Recover to help users manage their seed phrases. However, such services have raised privacy and security concerns among users, fearing unauthorized access to their sensitive information.
Moreover, the DeRec Alliance has unveiled plans to develop decentralized recovery solutions that would ensure the privacy of users’ funds while still enabling secure access.
As this incident highlights, the crypto landscape continues to evolve, with the demand for secure and user-friendly options being more critical than ever. Phantom’s latest glitch serves as a reminder of the inherent risks associated with non-custodial wallets. Users must remain vigilant about their recovery phrases and consider integrating backup services that align with their comfort and security needs.
