Atomic Wallet Users Report Losses of Crypto Assets in Recent Exploitation

Atomic Wallet Users Report Losses of Crypto Assets in Recent Exploitation

A concerning development involves reports of massive losses of cryptocurrency assets from several users of the well-known Atomic Wallet software, who claim that their funds have disappeared from the app’s storage. Because it is noncustodial and decentralized, Atomic Wallet places the responsibility of asset security on its users.

“We have received reports of wallets being compromised. We are doing all we can to investigate and analyze the situation. As we have more information, we will share it accordingly,” said Atomic’s team on Twitter on June 3.

Many impacted people commented on the page, describing their losses and reporting that their cryptocurrency portfolio had disappeared. At this time, it remains unclear about the exact methodology employed in conducting the attack. Atomic Wallet’s claim of a user base exceeding 5 million emphasizes the significant scale of this event.

Reputable on-chain detective ZachBTX has joined the inquiry to shed light on the events surrounding the attacked Atomic Wallet. ZachBTX’s reputation stems from his expertise in tracking down stolen assets and providing support to hacked projects.

This most recent breach is another addition to the expanding list of Bitcoin breaches that happen practically weekly. On May 28, an exploit occurred, resulting in the theft of 4,000 Ether from Jimbo’s Protocol, valued at $7.5 million. On May 20, hackers targeted Tornado Cash, a decentralized crypto mixer, and successfully carried out a hack. Through the acquisition of 1.2 million votes, the attacker gained full administrative control over the protocol.

Last year, cryptocurrency hackers stole approximately $3.8 billion, leaving the crypto industry struggling with rising attack rates. Notably, attackers with ties to North Korea were involved in the majority of these cases, which were primarily linked to DeFi protocols. The number of incidents in the first quarter of 2023 remained similar to the previous year. TRM Labs’ study reveals that the average hack size dropped to $10.5 million in Q1 2023 from nearly $30 million in Q1 2022.

TRM Labs cautioned against complacency, highlighting that a few major attacks could quickly reverse the declining trend. It emphasized that the decrease in hack sizes may only be temporary. The crypto ecosystem is still vulnerable to security breaches as recent events have shown, needing increased vigilance and strong security measures.

Affected Atomic Wallet users eagerly await further details from the team to understand the extent of the exploitation.



About Valbona

I am a passionate and dedicated student studying Computing and Information Technology at an American university. With a love for reading, writing, and research, I possess technical and problem-solving skills. I have a vision to make a meaningful impact in the world of technology, I aspire to develop innovative solutions that improve lives and empower individuals in the digital age.