Atomic Wallet Hack Caused Over $35M in Losses, On-Chain Intelligence Reports

Has held at least $35 million worth of crypto assets stolen from Atomic Wallet users since June 2, according to an analysis by on-chain sleuth ZachXBT. The five largest losses accounted for $17 million.

According On Atomic Wallet on Twitter, the cause of the attack is being investigated. There have been reports of tokens being lost, transaction history being erased, and even entire crypto portfolios being stolen.

An independent investigation conducted by pseudonymous Twitter user ZachXBT, known for tracing crypto stolen funds and assisting hacked projects, has found the biggest victim lost $7.95 million in Tether (USDT). ZachXBT commented, “Think this could cross $50m. Sadly just keep finding more and more victims.”

Atomic Wallet claims to have over 5 million users worldwide. Cointelegraph spoke with a longtime Atomic client who is now the victim of a security breach. “I felt very bad because I am a cyber security expert by profession,” said Emre, a Turkish resident who lost nearly $1 million in crypto assets obtained from bug bounty programs. His stolen coins include Bitcoin (BTC), Dogecoin (DOGE), Litecoin (LTC), Ethereum (ETH), USDT, USD Coin (USDC), Binance Coin (BNB), and Polygon (MATIC).

“They say they are looking into it, but they don’t have anything concrete yet,” Emre continued. The funds kept in the atomic wallet were earmarked for setting up a cyber security firm in Turkey.

Atomic is a non-custodial-decentralized wallet, which means users are responsible for the assets stored in the application. As always, its terms of service do not accept Any liability for on-chain damages caused to users. An excerpt says, “In no event shall Atomic Wallet be liable to you for damages arising from the Services in excess of $50.”

UPDATE: The investigation is still ongoing in a joint effort with leading security companies. The team is working on possible attack vectors. Nothing is certain yet.

The support team is collecting the addresses of the victims. Access to major exchanges and blockchain analytics companies…

– Atomic – Crypto Wallet (@AtomicWallet) June 4, 2023

Very little information has been provided to users by Atomic Wallet so far. “The support team is collecting victim addresses. Contacted major exchanges and blockchain analytics companies to trace and block stolen funds,” the Atomic team said in a tweet dated June 4.

Those contacted by Atomic have been asked to answer more than 20 questions about internet providers, virtual private network (VPN) use, and storage of seed phrases.

In Telegram’s community channels, some have pointed out that the exploit may have originated through an old dependency package. Dependency packages describe the relationships between activities to be performed within a program, including the order in which they should be performed, and the libraries required to perform these activities.

This attack joins a growing list of crypto hackers. The most recent cases include the Jimbos Protocol $7.5 million exploit and a malicious proposal that took over governance of Tornado Cash in May. a chainanalysis report Estimate That crypto hackers stole $3.8 billion last year, mostly through attacks linked to North Korea, took advantage of decentralized finance protocols.

Cointelegraph reached out to Atomic Wallet but did not receive an immediate response.

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