Coinspect Warns Ill Bloom Flaw Exposes Thousands of Crypto Wallets

Crypto security firm Coinspect has identified a vulnerability in the recovery phrase generation of several major blockchain wallets, dubbed 'Ill Bloom.' The issue affects wallets created across Bitcoin, Ethereum, Polygon, Rootstock, Tron, and Solana since 2018.

The weakness lies in the random number generator used during wallet creation, making private keys easier to guess. Coinspect's analysis reveals that at least $5 million has moved from exposed wallets, with fresh transfers reported on Sunday.

Users who generated their seed phrases using hardware wallets appear unaffected, while mobile software wallet users are more vulnerable, especially those using lesser-known apps. The vulnerability remains active, and Coinspect urges users to check older wallet addresses for potential exposure.