Atomic Wallet was apparently exploited, with users on Twitter reporting complete losses of their crypto wallets. Atomic is a decentralized, non-custodial wallet, which means that users are responsible for the assets stored in the app.
“We have received reports of wallet hacks. We are doing our best to investigate and analyze the situation. As more information becomes available, we will share it accordingly,” the Atomic team said on Twitter on June 3.
A number of users have commented after reporting the losses, claiming that the funds were wiped from their digital wallet app. ZachBTX, which is known for tracking stolen funds and assisting hacked projects, is taking part in the investigation. As of this writing, it is not clear how the attack was carried out. Atomic claims to have more than 5 million users.
God damn, all my hard-earned money has just vanished from the atomic wallet!!!! This is your responsibility to secure the funds, what will happen to our money? Please do not copy and paste anything here! Just give a clear answer, many users are facing this today!!
– Tom (@christomos03) June 3, 2023
Twitter users have also reported that funds on the Atomic Wallet app have been stolen in the past. This happened to my BTC 6 months ago with Atomic. They simply replied to protect pw, seed phrase, blah blah… I told them it’s not even possible! All I do is use U to exchange and then transfer cryptocurrencies. I use U more then! Now you’re right!” books A user replied to the post.
The attack joins a growing list of cryptocurrency hacks occurring every week. The Jimbos Protocol was exploited on May 28, resulting in the loss of 4,000 ether worth about $7.5 million. Tornado Cash, a decentralized crypto mixer, was recently hacked. On May 20, the attacker successfully cast 1.2 million votes for a malicious proposal, gaining full control over the protocol’s governance.
Cryptocurrency hackers stole an estimated $3.8 billion last year, most of them from attackers linked to North Korea and DeFi protocols, according to the Chainalysis report. Another analysis from TRM Labs reveals that while the number of incidents remained the same in the first quarter of 2023, the average breach size dropped to $10.5 million from about $30 million in the first quarter of 2022.
“Unfortunately, this slowdown is most likely a temporary reprieve rather than a long-term trend,” noted TRM Labs, warning that just a few large-scale attacks could tip the scales again.
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