According to reports on social media, some Ledger hardware users were unable to complete withdrawals using Ledger Live on Wednesday.
Ledger, a maker of hardware-based cryptocurrency wallets, has reportedly run into some problems as a result of significant cryptocurrency exchange outflows during the FTX bloodbath. On Nov. 9, Ledger experienced “massive usage” of their platforms and “a few scalability challenges,” according to a statement on Twitter from Charles Guillemet, the company’s chief technology officer.
Guillemet analyzed Ledger’s problems using the results of the ongoing crisis at FTX, a significant international cryptocurrency exchange. The chief technology officer claimed that more and more cryptocurrency traders are shifting their holdings from cryptocurrency exchanges to Ledger, saying:
“After the FTX earthquake, there’s a massive outflow from exchanges to Ledger security and self sovereignty solutions.”
According to Guillemet, Ledger should have resolved the outages as of 5:30 am UTC. Ledger first reported the wallet issues on Nov. 9 at around 11:00 pm UTC, officially announcing that its hardware wallet interface application Ledger Live was experiencing downgraded server performance.
“Specific issues may vary, including connecting to the My Ledger tab and performing a Genuine Check,” Ledger said in a tweet, adding that the client’s assets were safe. The hard wallet business then announced on Twitter that it has resolved the server outage roughly an hour after discovering it. Ledger said, “Our server outage has been resolved and all systems are operating.”
He said that this was true for their server outage as well. Ledger Support had previously disclosed that it had momentarily stopped FTX and FTX US trades on Ledger Live. In July 2022, Ledger began integrating swaps with FTX. The disruptions prevented some customers from sending any transactions using Ledger Live, including withdrawals, according to Ledger’s Twitter thread.
Although many remained optimistic about Ledger’s operations despite the bigger market problems, the crypto community was quick to respond to the problems. Ledger came under fire from some industry watchers for using the incorrect language to address their clients in the midst of FTX’s continuous problems. Ledger’s claim that “assets are safe” offended some, as FTX creator Sam Bankman-Fried made a similar claim on Twitter on November 7 before deleting it the next day.“FTX is fine.
Assets are fine,” Bankman-Fried declared in his tweet, just hours before the exchange stopped all crypto withdrawals after becoming unable to process such transactions.The recent issues on Ledger Live came as Ledger saw one of its “highest traffic days ever,” Ledger’s chief technology officer said.
“Traffic has increased significantly over time, even without major industry events,” he noted, adding that Ledger also previously saw plenty of traffic spikes after Celsius bankruptcy, the Solana hack as well as the FTX bank run. A user updating their device for the first time in a while or using a brand-new device for the first time is likely to be the cause of Ledger Live’s “unusual load on the device manager service,” which was also mentioned by Guillemet.
It was quickly fixed, and the team is already at work to enhance automatic detection and restoration, he continued. A major rival cold wallet provider, Trezor, has not recorded any issues due to the FTX issues so far, Trezor executive Josef Tětek said “The only way to avoid these massive blow-ups is to understand self-custody as a necessity,” the exec stated. “Not an option; a true necessity,” he emphasized. Many cryptocurrency experts, including Paolo Ardoino, the chief technology officer of Tether and Bitfinex, still advise users to “always to self custody in cold storage” if they want to keep their Bitcoin BTC ($17,773) and other cryptocurrencies.
