Coinspect says predictable wallet seed phrases tied to at least $5.69M in theft

A flaw in cryptocurrency wallet software made some recovery phrases predictable, leading to an estimated at least $5.69 million in stolen funds since May, blockchain security firm Coinspect said, CryptoSlate reported. Coinspect said it was able to predict recovery phrases in at least five wallet apps by exploiting a vulnerability in the random number generator of the CryptoJS library. The firm said hackers exploited the flaw multiple times, with about $3.14 million drained on May 27, another roughly $2.55 million traced between May 30 and July 13, and a third attack between July 20 and 21 that caused about $40,000 in losses. The firm added that more than 2,000 seed phrases across five blockchain networks appear to have been affected, although the list of impacted apps and the full scale of the damage remain unclear.