Atomic Wallet Users Report Crypto Losses in App Exploitation

Chainalysis reported that crypto hackers seized an estimated $3.8 billion, primarily from North Korea-affiliated attackers and DeFi protocols.

Atomic Wallet Users Report Crypto Losses in App Exploitation
Atomic Wallet Users Report Crypto Losses in App Exploitation

Atomic Wallet has seemingly been exploited, as users on Twitter have reported losing their entire cryptocurrency holdings.

Atomic is a non-custodial, decentralized wallet, indicating that users are responsible for their assets.

“We have received allegations of compromised wallets. We are doing everything possible to investigate and assess the situation.

Atomic’s team announced on Twitter on June 3 that they would share additional details as they became available.

Several users have commented on the post, alleging their digital wallet applications were wiped clean.

ZachBTX, renowned for tracing stolen funds and aiding hacked initiatives, is participating in the investigation.

As of this writing, it is uncertain how the attack was executed. Atomic asserts that it has more than five million users.

In the past, Twitter users have also reported that funds from the Atomic Wallet app were misappropriated. “This happened to my Bitcoin with Atomic six months ago. They merely responded to protect your password, seed phrase, etc. I said it was IMPOSSIBLE! I only use U to exchange and then transfer crypto.

My response was, I will no longer utilize U! In response to the post, a user exclaimed, “I was right all along!”

The assault joins a growing list of weekly crypto-hacking incidents. The Decentralized Finance (DeFi) application Jimbos Protocol was exploited on May 28, resulting in the loss of approximately $7.5 million worth of 4,000 Ether.

Tornado Cash, a decentralized cryptocurrency mixer, was also compromised recently. On May 20, an adversary effectively granted 1.2 million votes to a malicious proposal, thereby gaining complete control over the protocol’s governance.

According to a Chainalysis report, crypto hackers seized an estimated $3.8 billion in 2017, primarily from North Korea-affiliated attackers and DeFi protocols.

While the number of incidents remained the same in the first quarter of 2023, the average breach size decreased to $10.5 million from nearly $30 million in the first quarter of 2022, according to a second analysis by TRM Labs.

“Unfortunately, this slowdown is most likely a reprieve rather than a long-term trend,” TRM Labs remarked, cautioning that a handful of large-scale attacks could sway the scales once more.


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