Phantom, the popular decentralized finance (DeFi) wallet on the Solana blockchain, recently issued an urgent update for its iOS app. This came in response to reports of a bug that unexpectedly logged out some users, leaving them unable to access their wallets unless they had securely stored their recovery phrases.
iOS Glitch Leaves Users Locked Out of Wallets
The issue was first acknowledged on November 13, when Phantom posted on X (formerly Twitter) about a “small number of iOS users” experiencing app resets. The company reassured users, stating, “If you are among those affected, you can restore access using your recovery phrase.” In an effort to prevent further disruptions, Phantom promptly released a new iOS update. They also urged all users to back up their recovery phrases securely and expressed their apologies for the inconvenience.
The glitch came to light as users took to social media to report being logged out unexpectedly after updating the app. One user asked Phantom why their app had suddenly reset overnight, wiping out all their saved wallets. Another user remarked, “Phantom’s latest update is deleting people’s wallets… many tokens will be lost if users didn’t back up their keys.”
The Critical Role of Recovery Phrases
The issue primarily affected users who hadn’t backed up their seed phrases, which are essential for regaining access to non-custodial wallets like Phantom. Unlike custodial wallets, where a third party manages your assets, non-custodial wallets give users full control. This also means that losing your recovery phrase could result in a permanent loss of funds. Crypto trader ACE advised fellow users on X to avoid updating their apps without first saving their seed phrases, highlighting the risks of non-custodial wallets.
Graphite Protocol’s founder, Tom, commented on the situation, noting that the recent “Phantom update” had caused some users to suffer significant losses. He raised a valid question: Should users bear full responsibility for not saving their private keys, or should Phantom consider compensating those impacted by the app glitch?
Phantom’s Ongoing Technical Challenges
This latest issue adds to a series of technical hiccups that have affected Phantom users in recent months. In late October, users reported balance display problems in both the mobile app and browser extension. Phantom described the situation as an “uptime incident” and advised users to ignore certain simulation errors while continuing to transact with decentralized applications (dApps) if needed. The issue was quickly resolved, with the team assuring users that normal operations had resumed.
Earlier in the year, on February 3, the team noted delays in displaying token balances. Additionally, another glitch on August 15 temporarily prevented users from seeing accurate account balances. In both cases, Phantom swiftly fixed the problems to restore service.
Key Takeaways
This iOS bug serves as a crucial reminder for DeFi users to always back up their recovery phrases, especially when using non-custodial wallets like Phantom. While the company responded quickly to address the issue, the incident has sparked discussions within the crypto community about accountability and compensation for those affected by technical errors.
Phantom’s rapid response to fixing these bugs highlights their dedication to user support. However, this incident underscores the importance of user vigilance in securing their assets. Users are strongly encouraged to back up their recovery phrases and private keys to safeguard their digital holdings.
