A crypto wallet service, Klever, revealed that a previously known exploit caused by a low-entropy mnemonic affected several users. The incident first came to light when users reported suspicious activity within their wallets earlier this week.
According to the company’s update, the algorithm called Random Generation, used by the Bip39 implementation, was previously used by numerous cryptocurrency wallet providers. However, a flaw in the algorithm compromised the security and unpredictability of the generated keys, making the wallets susceptible to unauthorized access or malicious activity.
Addressing the incident, Klever saying all affected wallets were imported into Klever Wallet K5. These wallets were not originally created with Klever Wallet K5, but were previously created with an outdated and inefficient pseudo-random number generator (PRNG) method as a source of entropy. According to the company, this algorithm was widely used in early versions of various crypto wallet providers, which relied on the Javascript platform. He also highlighted that such a weak PRNG algorithm can significantly compromise the security and unpredictability of generated keys, potentially making them more vulnerable to attacks or unauthorized access.
On the Klever platform, the core codes responsible for mnemonic and entropy generation using the PRNG algorithm are implemented with strong security measures and are native to the operating system.”
Klever said the incident is similar to the one reported by the TrustWallet browser extension in early April. The company advised users who currently own old wallets that were created before Klever Wallet to quickly move to the new ones created in Klever Wallet K5 or Klever Safe. Initial investigation suggested that the suspicious activity was not unique to Klever and that users of multiple wallet providers are affected.
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This post Crypto Wallet Users Affected by Suspicious Activity Caused by Low Entropy Mnemonic
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