Web3Auth Moves At-Risk Wallet Assets Into Recovery Wallets

Web3Auth moved some assets it considered at risk into recovery wallets after a security issue in its infrastructure affected embedded wallets used by Torus Wallet, Keplr and other third-party apps.

Web3Auth disclosed the problem Nov. 7, saying unauthorized access affected some accounts created through Google or Apple sign-in. The company described the issue as affecting part of the embedded-wallet service used in third-party apps, including Torus Wallet and Keplr. The update covered some accounts and some assets, rather than identifying every account or asset as affected.

Working with Keplr, Web3Auth transferred some of the at-risk assets into recovery wallets. It also published verified addresses for those wallets across multiple blockchain networks. The addresses identify recovery destinations while the assets remain in the wallets.

Web3Auth and Keplr are coordinating the return of the assets to users. More details on the return process are expected in the coming days.