Atomic Wallet Exploited, Users Report Loss of Entire Portfolios

Atomic Wallet has apparently been exploited, with users on Twitter reporting the complete loss of their crypto portfolios. Atomic is a non-custodial-decentralized wallet, which means users are responsible for the assets stored in the application.

The Atomic team said on Twitter on June 3, “We have received reports of wallet compromise. We are doing everything possible to investigate and analyze the situation. As we have more information, we will update it accordingly.” will share.”

The comments came after several users reported the loss, claiming that funds from their digital wallet apps were wiped out. ZachBTX, an on-chain detective known for locating stolen funds and assisting hacked projects, is participating in the investigation. Till the time of writing the news, it is not clear how the attack was carried out. Atomic claims to have over 5 million users.

God damn it, all my hard earned money just disappeared from my atomic wallet!!!! It is your responsibility to keep the money safe, what will happen to our money? Please don’t copy paste anything here! Just give all clear answer, many users are facing this today!!

— Tom (@christomos03) June 3, 2023

Twitter users also pointed out that funds had been stolen on the Atomic Wallet app in the past. “This happened to me 6 months ago with Atomic with my BTC. They just replied back to protect your pw, seed phrase, blah blah… I told them its not even possible! I only use u to exchange and then take the crypto out. My response to them, I’ll then use U NO MORE! Now I was right!” wrote One user replied to the post.

The attack joins a growing list of crypto hacks that happen every week. Decentralized finance (DeFi) app Jimbos Protocol was exploited on May 28, resulting in the loss of 4,000 Ether worth approximately $7.5 million. Tornado Cash, a decentralized crypto mixer was also hacked recently. On May 20, an attacker successfully vetted a malicious proposal with 1.2 million votes, taking complete control of the protocol’s governance.

Crypto hackers stole around $3.8 billion last year, mainly from attackers linked to North Korea and DeFi protocols, According for a Chainalysis report. Another analysis by TRM Labs shows that the number of incidents remained the same in the first quarter of 2023, while the average size of hacks dropped from about $30 million in the first quarter of 2022 to $10.5 million.

“Unfortunately, this slowdown appears to be a temporary respite rather than a long-term trend,” TRM Labs said, warning that some large-scale attack could tip the scales again.

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