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HomeCrypto NewsThe FTX earthquake affected Ledger hardware wallets

The FTX earthquake affected Ledger hardware wallets

The FTX earthquake affected Ledger hardware wallets, according to the CTO – According to the chief technical officer for the company, the hardware-based cryptocurrency wallet provider Ledger has encountered some problems as a result of significant withdrawals of funds from cryptocurrency exchanges during the FTX slaughter.

On November 9, Ledger’s CTO Charles Guillemet said in a statement that the company’s platforms had “huge utilisation,” which resulted in “a few scalability difficulties.” Ledger also suffered from “a few scalability challenges.”

Guillemet based his analysis of Ledger’s problems on the consequences of the continuing crisis that has been plaguing FTX, which is a prominent worldwide cryptocurrency exchange. According to the CTO, cryptocurrency investors have been progressively moving their assets from cryptocurrency exchanges to Ledger. He stated that this trend may be explained as follows:

” In the wake of the FTX earthquake, there has been a significant migration from exchanges toward ledger security and self-sovereignty solutions.

According to Guillemet, Ledger should have been able to fix the issues by 5:30 am UTC on Tuesday.

On November 9 at about 11:00 pm UTC, Ledger made the formal announcement that the server performance of its hardware wallet interface application Ledger Live had degraded. This was the first time that Ledger has revealed problems with their wallets.

The FTX earthquake affected Ledger hardware wallets

Ledger stated via a tweet that “Specific challenges may vary, including connecting to the My Ledger page and doing a Genuine Check,” but that the client’s funds were not at risk.

Following the discovery of the problem, the business that makes hard wallets sent an announcement on Twitter stating that it has resolved the server issue within around an hour. Ledger stated that their server outage had been repaired and that all of their systems were now operational. He added that their server issue had been resolved and that all of their systems were now working.

Earlier, Ledger Support also notified that it temporarily suspended FTX and FTX.US exchanges on Ledger Live. This was done as a precaution. In July of 2022, Ledger began integrating FTX’s exchange platform into its own.

Because of the disruptions, some users were unable to send any transactions using Ledger Live, including withdrawals, according to a thread that was posted on Ledger’s Twitter account.

The cryptocurrency community was quick to respond to the challenges, despite the fact that many people maintained their confidence in Ledger’s operations despite the bigger market problems. In the midst of the continuous problems at FTX, several analysts of the industry pointed the finger of criticism towards Ledger, saying that they used the incorrect language to communicate with their clients. It would appear that some individuals were angered by the phrase “assets are secure” that was used by Ledger, since FTX creator Sam Bankman-Fried made a similar comment on Twitter on November 7, but then deleted it the next day.

“FTX works just well. Just a few hours before the cryptocurrency exchange ceased allowing any withdrawals, Bankman-Fried announced in a tweet that all assets were in good shape, despite the fact that it had been unable to conduct transactions involving cryptocurrencies.

The most recent problems with Ledger Live occurred during one of the “biggest traffic days ever,” according to the Ledger CTO, who spoke with Cointelegraph. “Traffic has increased significantly over time, even without major industry events,” he noted, adding that Ledger had previously seen plenty of traffic spikes after Celsius filed for bankruptcy, the Solana hack, and the FTX bank run. “Traffic has increased significantly over time, even without major industry events,” he noted.

Guillemet additionally stated that Ledger Live saw a “extraordinary load on the device manager service,” which can most likely be attributable to individuals upgrading their gadget for the first time in a while or utilising a brand new device for the very first time. He went on to say that the issue was promptly rectified, and that the team is now hard at work on automated detection and restoration.

According to Trezor executive Josef Ttek, who spoke with Cointelegraph, the major competing cold wallet service Trezor has not yet seen any problems as a result of the troubles with FTX. The executive made the following statement: “The only way to avoid these major blow-ups is to grasp that self-custody is a need.” He added, “This is not a choice; it is an absolute prerequisite.”

Even though self custody comes with its own unique set of hazards, many professionals in the cryptocurrency industry, such as Paolo Ardoino, CTO of Bitfinex and Tether, continue to advise customers to “always self custody in cold storage” if they want to save their Bitcoin (BTC) and other cryptocurrencies.

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