Twelve Recovery Wallets Later, Keplr Users Still Have No Explanation for the Key Breach

According to BlockchainReporter, Keplr users with accounts created via Google or Apple logins experienced unauthorized transactions. Keplr stated the incident originated at Web3Auth, a wallet infrastructure provider it utilizes. Web3Auth paused its embedded wallet service and published twelve recovery addresses, stating it moved assets out of vulnerable accounts as a whitehat recovery measure. Keplr cofounder Josh Lee noted that approximately 20 percent of accounts created with Google or Apple logins were potentially affected, though only a fraction were exploited. Neither Keplr nor Web3Auth has published a technical root-cause report explaining how the keys were initially exposed. Keplr instructed users to stop sending funds to affected accounts and to move remaining liquid assets to recovery-phrase or hardware-wallet accounts. Meanwhile, token prices such as ATOM fell in line with broader market movements rather than because of the Keplr incident. Both companies have yet to provide a reconciled list of transactions or a detailed timetable for staked and locked assets.