Atomic Wallet Falls Victim to Hack, Millions of Dollars Vanish
On June 3, Twitter was flooded with reports from numerous users claiming the loss of their digital assets stored in the Atomic Wallet, a popular non-custodial cryptocurrency wallet. Some users even reported the complete disappearance of their assets. In response to this alarming situation, the official Twitter account of Atomic Wallet acknowledged the issue and stated that they are currently investigating and evaluating the matter.
However, no information regarding the cause of the hack or plans for asset recovery has been announced as of now. Atomic Wallet tweeted, “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. For any questions and concerns, contact [email protected].”
We have received reports of wallets being compromised. We are doing all we can to investigate and analyse the situation. As we have more information, we will share it accordingly.
For any questions and concerns, contact [email protected]
— Atomic – Crypto Wallet (@AtomicWallet) June 3, 2023
Atomic Wallet is a non-custodial wallet that provides users with private keys to manage their digital assets. At the time of writing, the wallet boasts over 5 million users. Several security organizations, such as Slowmist, Peckshield, and on-chain investigator ZachXBT, have joined the investigation process.
On June 4, at 7 AM, @ZachXBT revealed that over $14 million worth of assets across Bitcoin, Ethereum, Tron, Binance Smart Chain, Cardano, Ripple, Polkadot, Cosmos, Algorand, Avalanche, Stellar, Litecoin, and Dogecoin networks have been compromised. The unfortunate worst-case scenario involved a victim losing $2.8 million.
ZachXBT tweeted, “Some things to note about this hack. The largest single victim I have observed is for 2.8M USDT. Multiple other losses for 6 figures across different chains. Thanks to all of the victims who have messaged me their transaction hash. The root cause is still TBD. Here are some observations made by @tayvano_ and an initial list of addresses with stolen funds we have collected.” The tweet further directed readers to a report that provides more detailed information on the incident.
Some things to note about this hack.
Largest single victim I have observed is for 2.8M USDT. Multiple other losses for 6 figures across different chains.
— ZachXBT (@zachxbt) June 3, 2023
It is important to be cautious, as phishing scammers have already started spamming fake Atomic Wallet refund tweets on Twitter, preying on desperate victims. Furthermore, ZachXBT’s graph indicates that the stolen funds have surpassed $14 million, and he estimates that at least $20 million has been stolen. In the latest update, the largest individual loss was found to be $3.5 million (equivalent to 1897 ETH), and the combined total of the five biggest losses amounts to $9.7 million.
This is not the first time a cryptocurrency wallet has encountered such issues. In August 2022, a number of Solana wallet addresses fell victim to an attack. Solana Status reported that 7,767 wallets were affected, resulting in the theft of $5 million worth of assets. The CEO of Solana Labs described the hack on Solana as similar to a supply chain attack on iOS-based wallets like Phantom and Slope.
The incidents involving Atomic Wallet and Solana serve as reminders of the ongoing challenges and vulnerabilities in the cryptocurrency space. Users must remain vigilant and take necessary precautions to safeguard their digital assets. As the investigation into the Atomic Wallet hack continues, affected users await further updates and hope for a resolution to recover their lost funds.
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