Most Crypto Wallets Aren’t Secure. What About Yours?

According to CryptoHead research, crypto-related fraud is on the rise. On average, the number of crimes surges by 41% each year. As per Crystal, the total volume of funds stolen has already reached $14.6 billion (check out the map). The most common are breaches of exchanges and wallets. So, how vulnerable is your crypto wallet?

Source: Crystal

The recent case with 9,000 Solana wallets hacked called into question the security of crypto wallets as $5.8 million in SOL tokens, 300+ Solana-based tokens, and NFTs have been drained. The exploit has affected several wallets, including TrustWallet, Slope, and Phantom — mobile and extension. Moreover, some users said they also lost USDC on Ethereum.

The main issue was not with Solana but with 3rd-party players and intermediaries involved in the process, Alex Zinder of Ledger says. It means it wasn’t a bug with Solana core code, and fraudsters didn’t hack the Solana blockchain itself. The problem was “a communication between a wallet provider and an NFT marketplace that compromised secret keys,” as per Zinder.

The Near Wallet might have also faced a similar issue. The email recovery option could have led to the mnemonic leakage, i.e., to losing assets. Luckily, the issue was resolved the same day.

About two months ago, over 10 browser-based wallets, including MetaMask and Phantom…

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