On June 3, Atomic Wallet announced that users’ wallets had been compromised, resulting in reports of stolen funds. In a subsequent update on June 5, the company revealed that less than 1% of its monthly active users had been affected or reported being affected by the hack.
Atomic Wallet stated that it is actively investigating the security breach and its underlying cause. To prevent further misuse, the victims’ addresses are being reported to major exchanges and blockchain analytics platforms for tracking and blocking the stolen funds. The extent of the losses, as estimated by on-chain investigator ZachXBT, amounts to over $35 million, involving various cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tron (TRX), among others.
According to ZachXBT, the largest individual loss incurred totaled $7.95 million in Tether (USDT). He highlighted that the five most significant losses accounted for approximately $17 million, which represents about half of the total stolen funds. ZachXBT also expressed gratitude to Jito Labs, a Solana infrastructure company, for their assistance in recovering $1 million from the attacker.
In 2021, Atomic Wallet underwent a security audit conducted by Least Authority. The audit revealed that the platform was “insufficiently secure” and exposed users to “significant risk.” Despite receiving recommendations and suggestions for improvement, Atomic Wallet has not yet made any public statements regarding compensating the victims.
ZachXBT issued a warning about scammers attempting to take advantage of the situation. These scammers employ various tactics, including making false promises of refunds. For instance, there have been reports of a Twitter account named “Atomic – Crypto Wallet” with a verified gold checkmark, which is fraudulent and should not be trusted. Users should remain cautious and vigilant to protect themselves from such scams.
