Wallet Generation Flaw ‘Ill Bloom’ Exploited to Steal Funds Across Multiple Blockchains, Coinspect Says

Coinspect Security said attackers are exploiting a wallet generation vulnerability dubbed “Ill Bloom” that can take control of affected wallets and steal funds. According to Odaily, the flaw has impacted wallets across multiple blockchains since 2018, and affected wallets were still being generated in recent weeks. Coinspect said the issue does not originate from a single software wallet. It reported that on May 27, hundreds of accounts were stolen from for about $3 million, and about $2 million more was transferred out of exposed wallets in the past few hours. Coinspect said thousands of accounts remain at risk, spanning Bitcoin, Ethereum and its Layer 2 networks, TRON, and Solana. The firm said it has launched a tool to check whether addresses are affected and urged wallet providers to integrate lightweight weak mnemonic detection features.