Crypto trading requires a balance between security, accessibility, and management. When this balance is disrupted, unpleasant consequences can follow. A recent incident involving the Phantom wallet app highlights this. A trader’s $1.2 million SPL tokens vanished after an update.
Trader Suffers Over $1M Loss
The trader identified as 0xFiyopi on X (formerly Twitter) had acquired 618,117 POPCAT and 1.56 million SCS tokens with two Solana wallets logged in the same Phantom app. According to the DeFi analytics tool DEX Screener, these digital assets were bought with $270,000 worth of SOL, putting the trader at over 344% unrealized gains.
According to a deleted tweet by 0xFiyopi, the incident started with an update by Phantom, the popular wallet application, which promised enhanced security and features. For the meme trader, it began a financial nightmare, as he lost the accounts “5MnBKCzxxbGzGJ43F9o33cdosiwG9CmrHG8o7vuwZmgV” and “Gw95t4zKqsXvZKhADrkQg4RpgVn3dDX2skxfsRqbohwK.”
0xFiyopi’s deleted tweet
After installing the update, the trader was logged out of his wallets. He may have thought it was no big deal initially since he would log back again with his seed phrase. Unfortunately, he realized he had lost access to them when he tried to access his accounts, which were probably created using the same mnemonic phrase.
Panic may have set in as 0xFiyopi tried to find his recovery phrase. He saved it. However, the recovery phrase he had written down in January 2022 did not work. He recalled that he had switched phones since then and created new accounts after installing the Phantom app on the new device.
At this point, the horrifying truth dawned on him: he had lost access to his over $1 million worth of meme holdings. The DeFi trader took to X to express regret, noting that he would typically not keep large amounts on his phone, but this time, he had made an exception.
Trader Responds to Critics
X users expressed concern over the loss, with some blaming Phantom and others criticizing 0xFiyopi for managing such a significant amount on his mobile device. The trader reacted to these backlashes by taking full responsibility for the incident while exonerating Phantom from any blame. He said, “It’s a $1M lesson—even newbies wouldn’t make this mistake.”
Meanwhile, amid these exciting times for most traders whose crypto assets are already on profit due to the recent surge, some users are left off in the excitement. Recently, a victim clicked a phishing link, which led to the loss of $6 million. Another crypto user lost $25 million by accidentally transferring to a smart contract wallet.
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