Crypto Assets Worth $35M Allegedly Stolen In Atomic Wallet Hack

Atomic Wallet, a well-known crypto wallet, was said to have been the victim of a massive security breach, with over $35 million in digital assets taken. On June 4, 2023, BleepingComputer revealed this troubling news.

Atomic Wallet is a digital currency wallet that runs on Windows, Android, iOS, macOS, and Linux. However, because of concerns about extensive theft from clients’ wallets, the wallet is now the subject of a comprehensive investigation.

On June 3, the corporation acknowledged the problem through Twitter. After receiving numerous reports of compromised wallets, they assured users they were actively investigating the situation.

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

In response to the security breach, Atomic Wallet has enlisted the expertise of third-party security companies. They aim to probe the incident and halt the trading of stolen funds on exchanges. This swift action aims to contain the situation and prevent further damage.

The company has temporarily shut down its download server, ‘get.atomicwallet.io,’ as a precautionary measure. The organization has taken this action to mitigate potential risks in the event of a compromise to its software.

Blockchain investigator ZachXBT has diligently tracked the stolen funds’ transactions. As he estimated, this breach has siphoned over $35 million in various cryptocurrencies.

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.

Thanks to all of the victims who have messaged me their transaction hash. The root cause is still tbd. https://t.co/4sybXUrXBo pic.twitter.com/or2b3eMvIs

— ZachXBT (@zachxbt) June 3, 2023

The earliest recorded transaction involving the stolen Atomic Wallet assets reportedly occurred on Friday, June 2, at 21:45 UTC, as confirmed by crypto security researcher Tay.

Atomic Wallet people you need to post your addresses and transaction hashes if there’s any hope of anyone determining scope and scale.

As we’ve learned from past incidents, you cannot and should not rely on the wallet that just rekt you to determine jack shit. https://t.co/DYiI6IefgL

— Tay 💖 (@tayvano_) June 3, 2023

Uncertain Origins Of The Breach Heighten Investigation

As the investigation unfolds, Atomic Wallet is actively gathering crucial information. They collect victims’ operating system details, the source of downloaded software, and actions taken before the theft.

They also inquire about the storage location of their backup phrases. Some users have noticed losing their crypto assets after installing a recent software update. Others claim that their funds vanished despite not having updated their software.

At present, the exact cause of the breach remains shrouded in uncertainty. In light of this alarming incident, we strongly advise Atomic Wallet users to transfer their crypto assets to alternative wallets while the investigation progresses.

The firm is dedicated to determining the facts underlying the breach and implementing measures to prevent such situations in the future.

In a digital landscape where security is paramount, this staggering heist is a stark reminder of the persistent threats cryptocurrency users face.

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The incident underscores the importance of remaining vigilant and employing robust security practices. It also emphasizes the need to adhere to best practices to safeguard one’s valuable digital assets.