Phantom Wallet Outage Sparks Token Loss Fears Among Users

Solana-based crypto wallet Phantom experienced a sudden outage that caused token balances and prices to display incorrectly. The problem hit during a popular token airdrop, preventing users from selling and causing some token values to drop sharply. 

Users quickly turned to social media for updates, while security firm PeckShield warned of possible phishing scams taking advantage of the outage. Phantom confirmed the issue on X, saying, “We are experiencing a temporary service outage affecting token prices and balances. Our team is actively working to resolve this as quickly as possible.”

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Hours later, the company updated users that the issue had been resolved, advising anyone still facing problems to contact support.

Users demand refunds amid Phantom glitch

Several users said they lost money while the platform was down. X user LetitBurn79 wrote, “It has been down for over an hour and a half, and it cost me $450 and I’m seriously freaking out.” Others are calling for full reimbursement, sharing concerns that the problem could happen again. 

Experts say the outage likely came from a front-end or data-integration issue, not a problem with the blockchain itself. Still, delays in fixing the issue are increasing user anxiety, making timely updates and clear communication crucial.

Phantom has had similar problems before. In February 2024, the wallet also had delays and temporary errors with how token balances were being updated. 

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Security concerns and regulatory context

Beyond technical problems, Phantom is under security scrutiny. On-chain investigator ZachXBT warned earlier this year about address-poisoning risks from unfiltered spam transactions. “So a new method for people to get drained. Please consider fixing address poisoning first,” ZachXBT said. 

Regulatory pressure is still present. Last month, the CFTC issued a no-action position on Phantom’s role in derivatives trading, meaning enforcement is unlikely under certain conditions. However, design and security issues remain a concern, especially as Phantom prepares to launch Phantom Chat in 2026.

Users should stay alert. Always check balances on blockchain explorers and avoid trading based only on what the app shows. While Phantom fixes the glitches, the outage highlights how self-custodial wallets can struggle to protect funds and maintain user trust.

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