How FTX Affected Ledger Wallet?

As a result of the FTX liquidity crisis, some Ledger wallets have been negatively affected by being unable to process withdrawals, according to a tweet.

Ledger Live is experiencing downgraded server performance. Specific issues may vary, including connecting to the My Ledger tab and performing a Genuine Check.

Your assets are safe and a fix will be deployed when we’ve identified the root cause.

We will post updates soon 🙏

— Ledger Support (@Ledger_Support) November 9, 2022

The Hardware-based cryptocurrency wallet provider Ledger was hit due to a series of outflows from centralized exchanges as a result of the FTX earthquake. 

Ledger CTO Charles Guillemet expressly stated that the Ledger platform experienced a sudden surge in its number of users leading to scalability glitches.

After the FTX earthquake, there's a massive outflow from exchanges to @ledger security and self sovereignty solutions ✊
We see a massive usage of our platforms and had a few scalability challenges this night. It should be resolved now. https://t.co/a1Le91tNZF

— Charles Guillemet (@P3b7_) November 10, 2022

Guillemet added that a number of investors have begun offloading their digital assets from cryptocurrency exchanges to Ledger to avoid funds being held, as witnessed by numerous retail investors on FTX.

Prior to then, Ledger disclosed that its hardware wallet interface application Ledger Live was having downgraded server performance.

Meanwhile, it assured users that their funds are safe and secure. A couple of hours later, the company disclosed that the glitch had been fixed as the server is now running smoothly and effectively.

Earlier, Ledger Support informed its community that it has temporarily paused any form of swapping from FTX and FTX.US on Ledger Live

📢Attention #Ledger users

FTX and https://t.co/w6AIYU9u3C swaps are temporarily paused in Ledger Live

We'll keep you updated as the situation evolves.

In the meantime, you can still use other swap providers

Learn more:https://t.co/ky2zT161eF

Any questions, comment below👇

— Ledger Support (@Ledger_Support) November 9, 2022

While there remains an appreciable level of confidence in the operations of Ledger, users in the crypto community lampooned Ledger for using wrong words to communicate amid the FTX storm.

Like Ledger, Coinbase and Kraken Exchanges Temporarily Broke Down

It seems that the FTX storm is having a ripple effect throughout the cryptocurrency industry. While Ledger continues to struggle, major cryptocurrency exchanges such as Coinbase and Kraken were not spared, as they experienced a temporary service outage.

Coinbase explained that the service timeout was due to the sudden increase in the volume of new user signups, thereby affecting its network connection issues relating to Coinbase.com, Coinbase Pro, and Coinbase Prime.

We’ve implemented a fix and latency has improved dramatically. Due to the high level of new user sign-ups and transfers to Coinbase today, some customers had trouble signing up / experienced delays signing in. https://t.co/IcA6wtZz1N

— Coinbase Support (@CoinbaseSupport) November 8, 2022

Meanwhile, both Coinbase and Kraken exchanges are up and running at the time of writing. 

On the other hand, FTX.com is yet to find a way out of its liquidity crunch as Binance has rejected its acquisition offer.