Ill Bloom Vulnerability Exposes Thousands of Crypto Wallets to Unauthorized Fund Transfers

Crypto security firm Coinspect has identified a vulnerability in certain software wallets that could expose thousands of users to unauthorized fund transfers. The issue, dubbed 'Ill Bloom,' stems from weak randomness used during recovery phrase generation, allowing attackers to systematically target vulnerable wallets.

According to Coinspect, at least $5 million in cryptocurrency has been drained since May 27, with an additional $2 million moved on Sunday. The affected wallet address scope spans Bitcoin, Ethereum, Polygon, Rootstock, Tron, and Solana, with some wallets generated as early as 2018 potentially exposed.

Coinspect has released a wallet-checking tool to help users determine whether their address may be vulnerable. Users who notice unauthorized transactions are advised to treat the situation as potentially related to seed-generation weakness, rather than normal compromise or phishing.