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Coinspect Security Discloses Weak-Seed Wallet Risks Since 2018, $3.14M in Suspected Theft Last Month

Security Incidents

2026-07-05 03:41:43

According to Coinspect Security, the blockchain security firm identified thousands of wallet seeds (mnemonics) generated using insecure code since 2018 that have been actively used. Last month alone, the firm discovered $3.14 million in suspected stolen funds within affected wallets. Coinspect Security noted patterns of concentrated fund transfers to single addresses and potential money laundering activity. The firm specifically warned Chinese community members that many users facing wallet risks may be located in China.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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