Categories: Cryptocurrency News

Atomic Wallet witnesses security break, $35M worth of crypto assets vanish

In a recent incident dated June 03, 2023, it has been learned that Atomic Wallet witnessed a hack attack from a malicious actor. The attack has vanished approximately $35 million worth of crypto assets. While the incident was publicly reported on June 04, 2023, Atomic Wallet came out in public a day earlier to acknowledge the incident.

According to the announcement by Atomic Wallet, the reports of the incident have been received, and an investigation is underway. As of now, Atomic Wallet has conveyed to all exchange platforms and blockchain analytic firms about the incident. This is crucial to track the stolen money and block it before getting leaks out of the network.

Atomic Wallet has said that less than a percent of users have been affected, with the last incident happening on June 03-June 04, 2023. They are tasked with investigating the incident while the download server of the company remains down to make sure that there is no further attack.

An investigation is done by Atomic Wallet and its partners, including asking victims for a few pieces of information. This includes noting down their operating system, the storage location of the backup phrase, the source from where they downloaded the software, and actions they performed before the attack. Needless to say, these are a few pieces of information, and more could be sought from the victims.

Atomic Wallet is investigating the incident, and more information will definitely be sought as they move forward with the case. As of now, users have been recommended to transfer their digital assets to another wallet. They can bring their digital assets back once the investigation has concluded and it is deemed safe to host the assets.

Many users have claimed that their wallets were exposed to the hack after they upgraded it. At the same time, others have claimed that their wallets got hacked without any update.

ZachXBT, a blockchain investigator, is following the incident closely. They have revealed that the value of the stolen fund is close to $35 million. Meaning the value could be more or less to that mark. ZachXBT is tracking all the transactions.

The self-custodial decentralized wallet has shown its intent to bring back the stolen funds; however, some DeFi experts have called the incident scary. The reason is that Atomic Wallet has been in the industry for a long time. Any attack on a well-established crypto wallet cannot be ignored by those who have just ventured into the industry.

The DeFi expert goes by the Twitter name Ignas | DeFi Research. They have also said that they are trying different wallets as the search goes on for a Multisig Wallet. Users who have lost their funds should choose to cooperate with Atomic Wallet in its investigation. The case is young and more details are expected to be shared by Atomic Wallet with the community.

Lili Chuang

Lili Chuang is a finance professional with an experience of over a decade in news writing. Recently, she has joined the CoinNewSpan team as a sub-editor. She is a firm believer of blockchain technology and cryptocurrencies. She curates contents regarding the latest insights into the crypto-market. In her free time, she loves to explore new places and connect with influential people of crypto space.

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Lili Chuang