Over $35 Million Allegedly Stolen From Atomic Wallet Users

The week started on a grim note after a massive theft of digital assets from Atomic Wallet users resulted in six-digit losses across various chains.

Distraught users have taken to Twitter to challenge some of Atomic Wallet’s claims, with the company assuring them that it is working with “leading security companies” and has reached out to organizations that have received stolen funds. Can help you find out.

Biggest victim lost ~$8M

According to the pseudonymous on-chain sleuth ZachXBT, the largest amount lost by a user in the Atomic wallet hack on the Tron blockchain was $7.95 million in Tether (USDT). further investigation revealed The five largest losses accounted for $17 million.

In the latest update, ZachXBT, which previously confirmed receiving multiple messages from wallet users regarding their lost funds, estimated that the total amount stolen could exceed $35 million.

Atomic Wallet, in a statement On June 5, it said that less than 1% of its monthly active users were affected by the exploit. The team behind the wallet service also said that the last withdrawal transaction was confirmed 40 hours ago, a Claim It is there Challenge: by many community members.

So far, no compensation plan has been announced. Atomic Wallet has not been able to determine the root cause. While some users reported that their digital assets were stolen following a recent software update, others revealed they were affected despite not updating to the latest version.

past red flags

Following this episode, a security disclosure from February 2022 surfaced again, which raised several security vulnerabilities in Atomic Wallet.

Least Authority’s security research team conducted a thorough security audit in March 2021 and claims to have discovered vulnerabilities in the wallet’s system design, which poses a significant risk to users.

The report was submitted to Parmanu in April. The Berlin-based security consulting firm concluded that Atomic sent them a response seven months later to note their updates and improvements, but that “a number of important issues and suggestions remained unresolved.”

it issued a Warning “Strongly recommend” that the Atomic Wallet team immediately notify users of existing security vulnerabilities. At least the authorization was further added,

“Furthermore, until the issues and suggestions outlined in the report have been adequately addressed and Atomic Wallet has undergone a subsequent security audit, we strongly recommend against the deployment and use of Atomic Wallet.”