- Atomic Wallet users have lost over $35 million in a hack that happened on June 2
- One victim lost close to $8 million, with the five most impacted entities losing a cumulative $17 million
- On-chain investigator ZachXBT expects the amount lost to increase as he uncovers more victims
Atomic Wallet users have lost over $35 million in a hack that happened on June 2, with on-chain investigator ZachXBT expecting the amount to reach upwards of $50 million as more victims are uncovered. So far, the five most impacted users have lost $17 million cumulatively with one of the victims accounting for almost half of that amount. According to the investigator, some funds have been recovered from the hacker “for one of the victims.”
Where were the Coins Withdrawn?
According to Atomic Wallet, less than 1% of its active users have reported missing funds, adding that they’re working with crypto exchanges and blockchain security providers to follow the attacker’s trail and block funds. The wallet has however not revealed how the attack happened or whether it has already put measures to stop more losses.
At the moment less than 1% of our monthly active users have been affected/reported. Last drained transaction was confirmed over 40h ago.
Security investigation is ongoing. We report victim addresses to major exchanges & blockchain analytics to trace and block the stolen funds.
— Atomic – Crypto Wallet (@AtomicWallet) June 5, 2023
In an effort to establish how the hack happened, affected users reaching out to the wallet have been asked to provide information about their internet providers, the platform they accessed their wallets from and addresses where their coins were withdrawn, among others.
It’s Seriously Scary
The hack has thrown the crypto world into panic with some saying it’s “seriously scary” to see such a respected storage platform compromised “despite being around for years. The breach adds to the list of DeFi hacks, with Jimbos Protocol and WDZD Swap being among the latest platforms to lose funds to malicious actors.
This is seriously scary.
Atomic wallet, despite being around for years, still gets hacked.
I’m trying out several software wallets, but for peace of mind, multisig wins for long-term storage.
Unfortunately, it’s not the most user-friendly way, but you’ll sleep better at night.… pic.twitter.com/LJI0iFnVot
— Ignas | DeFi Research (@DefiIgnas) June 4, 2023
According to the Hong Kong Police Force, the decentralized nature of blockchain and Web3 products motivates criminals to go after end users.
With hacked platforms like Jimbos Protocol engaging security providers such as Homeland Security or offering a bounty to recover stolen funds, it’s yet to be seen which route Atomic Wallet will take.
