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LNbits warns server operators; Web3Auth pauses wallet service after Keplr hit

LNbits asked server operators to shut down after attacks. Web3Auth paused its embedded wallet service after a security issue hit Keplr users, and says it moved $5.6 million out of exposed wallets.

Illustration: A small glass vault with an open door stands on a bright electric blue backdrop, and a single glowing key rests safely inside it while an empty shadow of a thief's hand falls away outside.
Illustration

Two crypto security problems surfaced at once. LNbits urged all of its server operators to shut down after a wave of attacks. Web3Auth paused its embedded wallet service after a security issue.

The Web3Auth problem hit users of Keplr, a crypto wallet. Reports of the damage focused on wallets created with Google and Apple logins.

Illustration: Seen from above, two sealed metal lockboxes sit side by side on a lime-colored surface, one with a small brass key resting beside it, suggesting recovery wallets held safe by their owner.
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Web3Auth says it moved $5.6 million out of exposed Keplr wallets before hackers could take it. It described the move as getting ahead of the attackers.

Two figures for the Keplr incident

  • Web3Auth moved5.6 million $
  • Bitquery theft estimate6.01 million $

Web3Auth's figure for funds moved and Bitquery's theft estimate.

Bitquery, a blockchain data firm, traced a theft of $6.01 million to Keplr wallets made with those logins. Web3Auth disputes that estimate. It says the funds went to recovery wallets, not to thieves.

Keplr confirmed the recovery addresses used by Web3Auth after the wallet breach. That supports the idea that the moved funds sit in addresses meant for recovery.

Trust Wallet, another wallet product, is not affected by the Web3Auth exploit. Other products that rely on the service may still need to check their exposure.

For users, the episodes show that wallets tied to social logins and self-hosted servers carry their own security risks.

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