Wednesday, February 28, 2024

Impact of FTX on Ledger Hardware Wallets.

According to the chief technical officer, huge outflows from crypto exchanges during the FTX carnage have caused some issues for hardware-based cryptocurrency wallet provider Ledger.

Ledger CTO Charles Guillemet posted a statement on Twitter on November 9 stating that the company’s platforms have seen “mass use” and “a few scaling difficulties.”

Guillemet analyzed Ledger’s problems using the results of the ongoing crisis at FTX, a significant international cryptocurrency exchange. The CTO said that more and more cryptocurrency traders are moving their assets from crypto exchanges to Ledger, saying:

There has been a significant shift away from exchanges to Ledger security and self-sovereignty solutions following the FTX earthquake. Guillemet claims that as of 5:30 am UTC, Ledger should have fixed the issues.

Ledger stated via a tweet that “specific challenges may differ, including connecting to the My Ledger page and carrying out a Genuine Check,” stressing that the client’s assets remained secure.

After identifying the issue, the hard wallet business announced on Twitter that it had resolved the server outage in approximately an hour. 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.

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 incorrect language to address their clients in the midst of FTX’s continuous concerns. 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.

Recent difficulties with Ledger Live coincided with one of its “biggest traffic days ever,” according to Ledger’s CTO, who spoke to the media. He added, “Traffic has increased dramatically over time, even without major industry events,” and that Ledger has previously had significant traffic increases during the FTX bank run, the Solana(SOL) breach, and the Celsius bankruptcy.

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 “exceptional burden on the device manager service,” which was also mentioned by Guillemet. It was promptly fixed, and the team is now at work to enhance automatic identification and restoration, he continued.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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