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As Sam Bankman-Friedâs crypto exchange FTX faces bankruptcy, users are scrambling to move cryptocurrency to cold wallets like Ledger and Trezor â but due to a sudden surge in traffic, Ledger experienced âdowngraded server performanceâ which left users unable to send or withdraw funds.
Ledger chief tech officer Charles Guillemet told Cointelegraph that since users often leave devices alone for long periods of time, the amount of users needing to upgrade software on Wednesday led to an âunusual load on the device manager service.â
âAfter the FTX earthquake, thereâs a massive outflow from exchanges to Ledger security and self sovereignty solutions,â he tweeted.
Two hours later, the cold wallet storage provider said its server outage had been patched up. But users were concerned by the language used when it first announced the outage.
âYour assets are safe and a fix will be deployed when weâve identified the root cause,â Ledger had tweeted.
âWhat do you mean by assets are safe? Isnât that obvious?â one user replied, (our emphasis).
âEveryone knows how Ledger works, but using âyour assets are safeâ is terrible timing,â another comment read.
Right before FTX announced Binance would acquire the exchange â a non-binding deal that has since fallen through â its founder Bankman-Fried reassured the public that âassets are fine.â
Read more: Panic and resignations reign over FTXâs final days
Bankman-Fried has since deleted the tweet and gone radio silent. FTXâs website âstrongly advisesâ not to deposit assets into the exchange and states it has halted withdrawals.
Earlier on Wednesday, Ledger announced it temporarily paused FTX and FTX.US swaps in Ledger Live.Â
Cold wallet storage competitor Trezor told Cointelegraph it hadnât experienced any outages during the ongoing outfall of FTX.Â
For more informed news, follow us on Twitter and Google News or listen to our investigative podcast Innovated: Blockchain City.
The post Peak traffic on Ledger left users unable to move crypto appeared first on Protos.
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