- June 5, 2023
- Posted by: [email protected]
- Category:
Atomic Wallet looks to have been a victim of exploitation, as users recounted accounts of their crypto portfolios being completely depleted. Atomic Wallet is a non-custodial decentralized wallet, which means that users are responsible for the security of their assets within the application.
The Atomic Wallet team confirmed reports of compromised wallets and informed users that the problem is being thoroughly investigated. On June 3, they indicated on Twitter that they would release more information when it became available.
“We have received reports of wallets being compromised. We are doing all we can to investigate and analyze the situation. As we have more information, we will share it accordingly.”
Numerous users commented on the post, detailing their losses and expressing their frustration. To aid in the investigation, on-chain sleuth ZachBTX, known for tracing stolen funds and assisting hacked projects, has joined the effort. The specific method employed in the attack remains undisclosed at the time of this writing. Atomic Wallet boasts a user base of over 5 million individuals.
Twitter users have previously reported instances of funds being stolen from the Atomic Wallet app. In response to the recent post, one user shared their experience from six months ago, when their bitcoin was allegedly taken from their wallet. The user expressed dissatisfaction with Atomic Wallet’s response, emphasizing that they had followed recommended security practices and blaming the platform for the loss.
This attack adds to the growing list of cryptocurrency hacks occurring regularly. On May 28, the decentralized finance (DeFi) app Jimbos Protocol fell victim to an exploitation, resulting in a loss of approximately 4,000 ETH, equivalent to around $7.5 million. Tornado Cash, a decentralized crypto mixer, also experienced a recent breach. On May 20, an attacker successfully manipulated the protocol’s governance, gaining control by granting 1.2 million votes to a malicious proposal.
According to Chainalysis, crypto hackers stole an estimated $3.8 billion in 2022, with a substantial amount attributed to North Korean and DeFi protocol attackers. TRM Labs discovered that, while the number of hacking incidents remained stable in the first quarter of 2023, the average size of the hacks declined to $10.5 million from over $30 million in the same time period in 2022.
TRM Labs cautioned that this decline may be a temporary respite rather than a long-term trend, as a few large-scale attacks could easily tip the scales once again, highlighting the ongoing vulnerability of the cryptocurrency ecosystem.
