The popular non-custodial decentralized wallet Atomic Wallet was attacked by hackers, causing users to lose more than $35 million in cryptocurrency assets.
On June 3, the Atomic Wallet project team reported on Twitter that some users’ crypto wallets were compromised. According to their data, the explosion affected no more than 1% of users, but some experts estimate that stolen funds exceed $35 million.
The Atomic Wallet team is still trying to find out more about the attack and is asking all users affected by the exploit to fill out a special Google form. It’s worth noting that over 5 million users use the Atomic Wallet app, and it’s unknown how many of them were targeted by the hackers. Several users reported the loss of tokens and the disappearance of information about transactions in the application, and some even said that their funds were withdrawn completely.
An independent investigation into the incident was conducted by a blockchain security expert known on Twitter as ZachXBT. He said the hackers stole over $35 million. The address hit the hardest lost nearly $7.95 million, while the five biggest victims lost a total of $17 million.
Twitter users also report cases of Atomic Wallet thefts in the past, noting that the project team hasn’t taken any measures to improve security. Notably, the terms of service stated that users are responsible for the losses and Atomic Wallet isn’t obligated to compensate for any damage caused by attacks or malfunctions.
According to the Chainalysis report, hackers stole approximately $3.8 billion in crypto in 2022 by launching attacks on various DeFi protocols. However, Beosin analysts noted that the damage from hacking attacks on decentralized finance protocols dropped significantly in May 2023, to only about $19.7 million, 80% less than in April 2023. However, the DeFi sector remains the most vulnerable to hacker attacks.
Currently, the Atomic Wallet team continues its investigation in conjunction with leading information security companies. They’re actively collecting addresses of affected users and contacting major exchanges and blockchain analytics companies to track and block the stolen funds.
