Atomic Wallet Hack Losses Exceed $35 Million


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.

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.

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.

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.

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.

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.”

Data: Atomic Wallet.

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.

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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