Crypto Theft Wave Linked to 2022 LastPass Breach

Hackers who compromised LastPass in 2022 are now systematically draining cryptocurrency wallets. The breach exposed encrypted vaults containing private keys and seed phrases, with attackers exploiting weak master passwords through offline cracking techniques. TRM Labs confirms these thefts have been ongoing since the breach.

LastPass initially downplayed risks, merely suggesting password resets for vulnerable users. Yet court filings reveal the U.S. Secret Service seized $23 million in stolen crypto tied to this breach, confirming attackers decrypted vault data to access wallets. No evidence suggests victims were compromised through malware or phishing—the attack vector was purely the leaked LastPass credentials.

The incident underscores critical flaws in relying on password managers for crypto security. As blockchain analytics firms trace stolen funds across exchanges, the episode serves as a stark reminder: encryption alone cannot protect against determined attackers with time and computing power.