ScaleBit, a subsidiary of security auditor BitsLab, has identified a vulnerability in Uniswap’s Web3 wallets that could jeopardize all stored assets. According to ScaleBit, this flaw allows attackers who have physical access to a user's device to bypass authentication mechanisms and access the wallet's mnemonic phrase, also known as the seed phrase. This phrase is essential for controlling the assets within the wallet and can range from 12 to 24 random words. The warning comes against a backdrop of increasing losses in the cryptocurrency sector due to cyber exploits, amounting to approximately $2.3 billion in 2024. Access control breaches related to mnemonic phrases have become prevalent, contributing to rising losses in the crypto space. In December alone, reported exploit losses were significantly lower than in previous months, underscoring ongoing security challenges in cryptocurrency and decentralized finance.

Source 🔗