According to @phantom, multiple spoofed sites are mimicking the official Phantom interface and immediately prompt users to enter their seed phrase, and Phantom states it will never ask for a secret recovery phrase online, source: @phantom on X, Aug 20, 2025. @phantom advises three actions to stay safe: never enter the secret recovery phrase online, double-check the domain before clicking, and bookmark official links, source: @phantom on X, Aug 20, 2025. Traders connecting wallets to DEXs, NFT marketplaces, and airdrop pages should apply @phantom’s guidance to avoid seed-phrase capture during trade execution or approvals, source: @phantom on X, Aug 20, 2025.

According to Samson Mow (@Excellion) on Twitter, despite major cryptocurrency companies promoting custodial wallet solutions that downplay the need for users to control their seed phrases, holding onto your seed phrase remains essential for true asset ownership and security (source: Samson Mow, Twitter, May 28, 2025). This trend toward custodial models could impact decentralized finance (DeFi) participation and may raise concerns among traders about counterparty risk and centralized control, which are crucial considerations for crypto portfolio management.

According to Richard Teng, maintaining vigilance in using Web3 wallets is crucial for security, emphasizing never to import a seed phrase from an unverified source and to be cautious of urgent fixes claimed by scammers (source: Richard Teng).

According to IntoTheBlock, there is an unusual situation involving Litecoin where an entity appears to be holding a significant amount of the cryptocurrency. This could suggest either a strong belief in Litecoin's future value or a potential loss of access to the wallet's seed phrase, preventing any transactions.