This is why you should never store your seed phrase online

In a hack, a LastPass user lost crypto money worth $4.4 million. The victims had stored their seed phrase online.

A data breach at password manager LastPass in 2022 led to the theft of crypto money worth $4.4 million. Most of the victims were longtime LastPass users, such as pseudonymous On-Chain analyst ZachXBT discovered when he tracked money from hacked wallets on Oct. 27. At least 25 users were affected and had about 80 different wallets. The victims had their seed phrase stored in the LastPass software.

According to a statement LastPass must now answer in court. Experts advise users who have their seed phrase or private keys stored in LastPass to transfer their assets to a new wallet as soon as possible.

The seed phrase is a precisely defined but randomly generated list of words that contains all the information needed to recover the wallet in case of loss. So caution is advised, because anyone who gets their hands on the words will be able to access the crypto in the wallet and then steal them.

Maximum security for the seed phrase is therefore essential. Read here more about what a seed phrase is and how to keep it safe.