Users of the decentralized wallet Atomic Wallet lost at least $35 million worth of digital assets as a result of the hack, according to on-chain researcher ZachXBT.
Update: A new largest victim was found on Tron with 7.95M USDT stolen,
The five biggest losses account for $17M.
My graph has now surpassed $35M in total stolen. pic.twitter.com/eqfXkm9vlL
— ZachXBT (@zachxbt) June 4, 2023
The five largest losses accounted for $17 million, with $7.95 million stolen from one of these users.
According to the expert, the losses of the victims could exceed $50 million, as he continues to find more and more victims.
“We have received reports of wallets being compromised. We are doing our best to investigate and analyze the situation,” the Atomic Wallet team wrote.
According to the developers, they recorded the last unauthorized transaction on June 3, the incident affected “less than 1% of monthly active users.” The application has more than 5 million customers.
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 support@atomicwallet.io
— Atomic-Crypto Wallet (@AtomicWallet) June 3, 2023
According to the Atomic Wallet team, they have turned over the addresses of the affected users to leading exchanges and blockchain analytics firms to help with the investigation.
SlowMist got involved in tracking the stolen funds and invited affected users to fill out a form so that specialists could search for the assets.
If you were a victim of the @AtomicWallet hack, we kindly request you to fill out the form below, so we can assist you in the recovery process: https://t.co/solekNMTOl
— SlowMist (@SlowMist_Team) June 4, 2023
ZachXBT also asked to send him the data. The researcher said that he managed to save $ 1 million for one of the victims. He did not disclose details, except for the fact of assistance from the founders MEV-Jito Labs project on Solana.
A huge shoutout goes to @buffalu__ @brian_smith_0 for helping us successfully rescue $1m from the Atomic Wallet hacker for one of the victims.
— ZachXBT (@zachxbt) June 4, 2023
The expert noted that against the backdrop of the incident, scammers appeared on Twitter who send phishing messages about refunding funds to victims of hacking.
Be careful phishing scammers have already started spamming fake Atomic Wallet refund tweets on Twitter to prey on desperate victims. pic.twitter.com/ZuhJpGg5Eu
— ZachXBT (@zachxbt) June 3, 2023
Despite Atomic Wallet’s claim that the attack had stopped, ZachXBT advised users to withdraw their assets from the app.
Atomic Wallet is a non-custodial wallet, which involves storing private keys on its own.
The terms of use for the app say:
“Under no circumstances shall Atomic Wallet be liable to you for: […] any unauthorized use of your wallet address and/or private key due to your lack of privacy.”
One of the commentators drew attention to the results of the audit of Atomic Wallet by security experts from Least Autority. In February 2022, the firm required the wallet team to bring the application code in line with the recommendations and requirements of the April 2021 report.
“We have identified several security-critical issues that leave current Atomic Wallet users vulnerable to a range of attacks that could result in the complete loss of user funds. In particular, we have found that user funds are at increased risk due to the current use and implementation of cryptography,” Least Autority said.
Experts strongly recommended that Atomic Wallet customers be notified of the problems and that the use of the wallet be suspended.
⚠️ Can you explain this, security disclosure since 2021!!
I’M OUT❗❗ ⚠️https://t.co/DWO9qTV0Wq— Lee maddeys (@maddeysLee) June 5, 2023
Recall that in May, DeFi projects lost $19.69 million as a result of exploits, and the damage from schemes rug pull more than doubled this figure and reached $45 million.
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