A flaw in Web3Auth’s infrastructure, owned by Consensys, compromised the private keys of certain Keplr wallets, particularly those created through Google or Apple sign-in. According to Bitquery, attackers stole at least $6 million from more than 44,000 wallets spanning eight networks in the Cosmos ecosystem. Web3Auth suspended its embedded wallet service and is working to recover vulnerable assets, while Trust Wallet says it was unaffected and MetaMask has identified no affected users. The impact on other third-party integrations remains unconfirmed, although no link has yet been established with the broader market decline, including Bitcoin and Ethereum. These incidents, following attacks on Binance, Bitget, and KelpDAO, increase investor losses and weaken confidence in embedded wallets and decentralized finance infrastructure.
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