Woofun AI reports that security firm Coinspect identified a wallet vulnerability originating in 2018 involving insecure seed generation code. Analysis reveals thousands of compromised seeds were actively used, resulting in $3.14 million in thefts last month, largely unreported.

Funds were consolidated into single addresses exhibiting money laundering characteristics. One address transferred $2 million shortly after the alert, with the nature of the transfer remaining unclear. Coinspect warns that users in China face significant risk to remaining assets.