SlowMist CISO Urges Users to Go Offline, Export Mnemonic and Move Funds Before Wallet Upgrade
Security firm SlowMist issued an urgent advisory after reports of a compromised wallet version. SlowMist’s CISO recommends users immediately disconnect affected wallets from the internet, export their mnemonic (seed) phrase, and complete offline transfers of assets to a new secure wallet before performing any wallet upgrade. The guidance stresses that remaining online increases exposure to further breaches. For wallets with backed-up mnemonics, the firm advises moving all funds to a freshly created wallet and keeping operations offline until transfers finish, then proceeding with upgrades to reduce risk. The advisory is aimed at minimizing asset loss and preserving wallet integrity amid an active compromise report.
Bearish
A security advisory about a compromised wallet version tends to increase short-term market uncertainty and can be bearish for risk assets. Traders may liquidate holdings held in affected wallets or shift into stablecoins and cash, increasing selling pressure on smaller-cap tokens and potentially affecting liquidity. Historical precedents—such as major wallet or bridge compromises—often produce immediate price drops for affected token ecosystems and temporary volatility across the market (users withdraw funds, exchanges see higher withdrawal volume, and confidence dips). In the short term expect increased selling, elevated volatility, and possible outflows from decentralized platforms tied to affected wallets. In the medium-to-long term the impact should be limited if users successfully migrate funds and no broader systemic exploit emerges; wallet providers that fix vulnerabilities and transparently communicate can restore confidence. Key trader actions: monitor withdrawal flows, on-chain movement of large wallets, and announcements from wallet vendors; favor risk management (reduce exposure, tighten stops, move funds to secure custody) until the situation is resolved.