Coinspect traced Ill Bloom to an insecure PRNG that produced predictable recovery phrases, exposing every address derived from the same seed. A May 27 sweep drained 431 wallets for $3.14M; another exposed wallet later lost $2.1M in USDT, pushing confirmed losses above $5M. With Coinspect reporting fresh Bitcoin drains on July 10, users should check public addresses at illbloom.org and move any match to a wallet generated from a brand-new seed.

TLDR by @Benthic

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