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Mononaut, the anonymous operator behind the mempool.space bitcoin explorer, weighed in on the incident. He suggested that “the most likely explanation is that the wallet was generated from bad entropy.” In layman’s terms, this means the wallet’s security was compromised due to weak randomization in its creation process. Mononaut’s insight provides a crucial understanding of the technical flaw that may have led to this unfortunate event.
Bad entropy has always cause hacks to large number of wallets, this is mostly because by users trying to randomly picking their own mnemonic words from the 2048 words, humanly selection are often not too strong randomization. Another cause of this problem is the use of online tools to generate one’s seed phrase which is said to use JavaScript instead of python. Sites like Ian Coleman’s use this JavaScript and that is why it is always best to use wallets like electrum or even bitcoin core to generate one’s seed