According to the source, a thief photographed a victim’s seed phrase inside an apartment and subsequently drained about 1.7 million in crypto from the wallet. According to the source, the incident shows that physical exposure of a seed phrase grants full wallet control and enables rapid, irreversible on-chain transfers with total loss of funds. According to the source-documented incident, traders should limit hot-wallet balances and keep seed phrases offline to reduce portfolio drawdown risk from similar attacks.