Ill Bloom Wallet Flaw Drains $3.1 Million From 431 Wallets, Coinspect Says

Coinspect disclosed an “Ill Bloom” vulnerability in a crypto wallet that it said was used to drain 431 wallets for about $3.1 million on May 27. According to NS3.AI, the flaw generated weak recovery phrases during wallet creation, enabling attackers to compromise affected wallets. Coinspect said hardware wallet users were not impacted.