Web3Auth Suspends Embedded Wallet Service During Security Probe

Web3Auth announced a temporary suspension of its embedded wallet service after identifying a security issue involving some third-party services, as Keplr investigated reports of unauthorized transactions in wallets created with Google or Apple sign-in.

Keplr said it received reports involving some accounts created through those logins and paused both sign-in methods. The wallet provider is working with Web3Auth, which provides the embedded-wallet infrastructure used for those accounts.

Keplr’s initial assessment is that accounts created with recovery phrases or hardware wallets were unaffected; accounts opened through Google or Apple could be affected. Web3Auth said its preliminary review found no evidence that MetaMask users were affected.

Neither company had disclosed the number of affected accounts, losses or the chains and tokens involved. Keplr told potentially affected users not to add funds or import or recreate their accounts. It said it would share next steps through its official account after confirming details. Keplr primarily serves the Cosmos ecosystem.