Authored by Zoltan Vardai via Cointelegraph,

Cryptocurrency exchange Binance warned Tuesday that an iOS flaw could expose crypto wallet recovery phrases and private keys if a user runs a malicious app on an affected iPhone.

Binance listed iOS 26.7.1, 27.0.1 and 27.2 among the affected versions that could allow malicious apps to read local files from other apps, putting seed phrases, private keys and login credentials "at risk across the entire ecosystem." Binance added that this was "an iOS-level issue, not unique to Binance."

Binance urged users to delete any apps installed from untrusted sources, update iOS and all apps to the latest official versions, and transfer funds to new wallets created on clean devices if they suspect a breach already occurred.

Blockchain security firm SlowMist flagged the issue earlier on Tuesday, saying a malicious app could read recovery phrases if a wallet stores them unencrypted on the device.

An iOS security researcher who goes by forcequitOS publicly disclosed the flaw on Sunday and credited another researcher who goes by 0xjohnny.

Apple released iOS 27.2.1 and 26.7.3 on Monday, but it remains unclear whether either update fixes the flaw. Cointelegraph contacted Apple about the vulnerability, but had not received a response by publication.

A spokesperson for Binance told Cointelegraph that the "underlying file-access risk may apply across the iOS ecosystem" but said it identified no confirmed cases where attackers used this bug to access cryptocurrency wallets or steal funds.