ETH wallet exploit backfires as MEV bot captures $7.7M, Kelp freezes address

Warning: A wallet generation vulnerability known as "Ill Bloom" leaves thousands of accounts at risk.

PANews reported on July 6th that, according to Coinspect Security, a wallet generation vulnerability called "Ill Bloom" is being exploited by attackers, allowing them to control affected wallets and steal funds. This vulnerability has affected wallets on multiple blockchains since 2018, and the affected wallets were still being generated weeks ago, indicating it did not originate from a single software wallet. Coinspect stated that hundreds of accounts had already lost approximately $3 million on May 27th, and another $2 million has been transferred from exposed wallets in the last few hours. Thousands of accounts remain at risk, covering Bitcoin, Ethereum and L2, Tron, and Solana. Coinspect has released an affected address checking tool and is urging wallet providers to integrate lightweight weak seed phrase detection functionality.