Crypto Nightmare: Atomic Wallet Hack Leaves Users Devastated

Atomic Wallet hack losses top $35M, on-chain sleuth reports
Based on an analysis by on-chain investigator ZachXBT, a staggering $35 million worth of cryptocurrency assets has been stolen from users of Atomic Wallet since June 2. Notably, the five biggest losses alone amount to $17 million.

Atomic Wallet, in a statement on Twitter, has confirmed that they are investigating the cause of the attack. Disturbing reports have emerged of lost tokens, erased transaction histories, and even complete theft of entire cryptocurrency portfolios.

An investigation conducted by ZachXBT, a pseudonymous Twitter user known for tracing stolen crypto funds and assisting hacked projects, revealed that the largest victim suffered a loss of $7.95 million in Tether USDT. ZachXBT commented, "I think it could exceed $50 million. Unfortunately, I keep discovering more and more victims."

Atomic Wallet, with over 5 million users globally, has experienced a security breach, leaving many victims in its wake. Cointelegraph interviewed one such victim, Emre, who lost almost $1 million in crypto assets received from bug bounty programs. Emre, a cybersecurity expert, expressed his disappointment and mentioned that Atomic Wallet is still investigating the incident without any concrete findings so far.

Atomic Wallet, being a noncustodial-decentralized wallet, places the responsibility for assets on the users themselves. The Terms of Service absolve Atomic Wallet of liability for on-chain damages, stating a maximum liability of $50. The investigation is ongoing, with Atomic Wallet collaborating with leading security companies to identify possible attack vectors.

Users have been asked to provide information about their internet providers, use of virtual private networks (VPNs), and storage of seed phrases. Atomic Wallet has reached out to major exchanges and blockchain analytics companies to trace and block the stolen funds.

The attack on Atomic Wallet adds to the growing list of crypto hacks, including recent cases like the Jimbos Protocol exploit and the malicious proposal that took control of Tornado Cash's governance. According to a Chainalysis report, crypto hackers stole approximately $3.8 billion last year, primarily through North Korean-linked attacks exploiting decentralized finance protocols.

Previous Next

This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.