Phantom Wallet Faces Backlash After iOS Update Leads to Wallet Resets, User Reports Losses

Phantom Wallet, a prominent Solana wallet provider, is facing criticism after some iOS users reported losing access to their wallets following a recent app update.

The issue gained traction when Solcasino founder 0xfyopi revealed in a now-deleted tweet that he had lost access to wallets holding over $1 million in $POPCAT tokens. Despite backing up a recovery phrase from January 2022, it failed to restore the wallets, hinting the phrase may have changed during a device switch.

Phantom Responds with New Update

In response, Phantom acknowledged the issue affecting a “small number” of iOS users, advising them to restore their wallets with their recovery phrases.

Phantom also released an additional iOS update to prevent further issues and urged users to securely back up their recovery phrases before updating the app. “We sincerely apologize for any inconvenience and are committed to preventing this from happening again,” Phantom stated.

Broader Concerns Over Self-Custody Risks

The incident highlights a significant risk within crypto: billions of dollars are lost each year due to mistakes related to self-custody. As crypto aims to onboard new users unfamiliar with private key management, the industry is facing mounting pressure to address these risks. Calls for enhanced wallet recovery options, such as two-factor authentication, are growing amid the challenge of managing recovery phrases, especially for inexperienced users.

Community Reactions and Caution for Users

While most people criticized Phantom’s update, others stressed the importance of securing recovery phrases—a critical step emphasized when creating a wallet. Meanwhile, social media reacted with sarcastic memes, joking that Phantom was “intentionally reducing meme coin supply” with the update. However, the message is clear: users are advised to secure their seed phrases and private keys before updating or risk irreversible asset loss. As reports continue to surface, Phantom users are urged to review wallet security practices and approach updates carefully.