A user who did not save or lost his seed recorded losses of up to USD 600,000.
This session “reset” can happen in any wallet, not just Phantom.
Users on the social network Once access to the wallet was restarted, Phantom asked users to import or enter their recovery phrases to log in again. Users who did not safeguard their seed phrase or lost it lost access to their funds.
Since his X official accountPhantom Wallet reacted to user comments after updating the app on iOS:
One of the affected users claims to have lost up to $600,000 product of the so-called “glitch” in Phantom Wallet:
I just lost my wallet with $600,000 in it. They are my life savings and my savings. When will I receive my refunds? I need to invest again as soon as possible.
@ebukaarcryppted, X user.
Secure your seed phrase now!
That an update that ‘reset’ access to users’ private keys and they lost access to their funds implies that those affected were only using their login passwords, without making the correct backup of your keys. It also implies that the users who lost access did not know, or at least ignored, the implications and responsibilities of exercising self-custody of bitcoin and cryptocurrencies.
The password is a useful and accessible, but less secure alternative to entering the wallet that manufacturers use to save. clicks and processes to users. However, as this fact demonstrates, the possession of this password does not guarantee access to the walletand should be considered a provisional means. It is necessary to know, therefore, that the login password is not linked to the private key of the wallet.
Self-custody is the first thing to learn
Faced with the fact, another user of the X network comments: “600k stored and wallet without backup. Are you serious?” Another user, in turn, compared the event of glitch in the Phantom wallet with a token burn: “it seems that an update simply permanently locked a large amount of liquidity in the Phantom wallets. What a natural burning event!” commented iwinn_trades.
The question from the affected user regarding the refund shows that this I did not know the implications of self-custody of funds, and the importance of storing seed phrases and properly backing them up.
As CriptoNoticias reported, practically the first thing cryptocurrency owners should do is have a physical backup of their seed. The ideal way to protect it is to write it down on a piece of paper or notebook, without exposing it in a digital medium connected to the Internet where it can be violated. It is equally important to create more than one backup of the recovery phrase in different notebooks or papers, and hide them in different safe places.
Among the safest self-custody practices is to never share the seed phrase of an individual custody wallet with anyone.
