Only if the attacker only transferred funds to one wallet.
I could also see a sophisticated attacker holding off on draining wallets until the amount contained started to drop or increased past a threshold. Draining funds as soon as a user attempts to setup the app gets you a few suckers but also means you'll be reported quickly. Giving everyone a failure message while recording the recovery key might let you go significantly longer before discovery.
I could also see a sophisticated attacker holding off on draining wallets until the amount contained started to drop or increased past a threshold. Draining funds as soon as a user attempts to setup the app gets you a few suckers but also means you'll be reported quickly. Giving everyone a failure message while recording the recovery key might let you go significantly longer before discovery.