Summary Points
- Hundreds of dormant Ethereum wallets, mostly 4-8 years old, were drained in a live attack, with losses exceeding $800,000, involving old compromised keys.
- The attack is linked to weak entropy in old seed phrases and wallet backups, not a smart contract flaw or token approval scam.
- This incident caps a record-breaking April with over $635 million lost in 28 DeFi exploits, including a $294 million attack on KelpDAO.
- Experts advise users to revoke old token approvals and check for compromised keys, highlighting the risks of outdated wallet security practices.
Old Ethereum Wallets Drained in Coordinated Attack, Losses Pass $800K
Targeting Long-Inactive Wallets
Recently, hundreds of old Ethereum wallets were drained in a coordinated attack. Most of these wallets had been inactive for over seven years. On-chain data shows that an attacker used compromised keys to access these wallets. Many of the affected wallets date back four to eight years, which suggests that their security had weakened over time. Experts believe the attacker exploited old, exposed keys rather than a software flaw or smart contract bug. This pattern indicates that previous leaks, such as weak seed phrases or outdated backup processes, contributed to the attack. As a result, losses have exceeded $800,000, according to some analysts.
How the Attack Unfolded
One early victim, known online as Capitulation.eth, reported unauthorized withdrawals. Observers verified this by reviewing blockchain data. They found a single address draining multiple wallets, with some last active in 2019. The attacker then moved the stolen funds onto different networks. For example, around 324 ETH, worth about $734,000, was bridged to Bitcoin using Thorchain. Additionally, the attacker deposited 2 ETH to an exchange, probably to convert to Monero for added privacy. This attack highlights a security issue linked to old keys rather than new vulnerabilities. Experts advise users to review their wallets, especially old ones, and revoke unused token permissions. However, many say this incident is distinct from recent token approval scams. The attack underscores ongoing security challenges in DeFi, especially when long-unused wallets become targets after years of exposure.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. This information may be outdated or incomplete. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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