Ill Bloom Vulnerability Drains at Least $5 Million Since May 27, Coinspect Says

Coinspect said the Ill Bloom vulnerability has put thousands of cryptocurrency wallets at risk and has drained at least $5 million since May 27. According to NS3.AI, the issue stems from weak randomness used during recovery phrase generation in certain software wallets. Coinspect said seeds generated by hardware wallets are not affected. The firm attributed the losses to attackers exploiting predictable recovery phrases created under the flawed randomness conditions.