Atomic Wallet hacked, loss of more than 35 million USD

According to CoinTelegraph , Atomic Wallet users were hacked and over $35 million in cryptocurrency was stolen. Atomic Wallet is a decentralized wallet for storing digital assets, meaning users are responsible for the assets stored in the app.

Atomic Wallet said on June 3 that it was investigating and analyzing the situation after receiving reports from users. The wallet provider Atomic said that less than 1% of its monthly active users were affected by the attack. Atomic is working with blockchain analysts to track and block the stolen funds. Many users lost hundreds of thousands of dollars worth of digital currency, including one victim who lost $7.95 million worth of Tether (USDT).

Atomic Wallet currently has over 5 million users.

The flood of complaints under Atomic’s Twitter post continued, with some people saying they had their coins stolen but that their wallet provider had done nothing to help them at the time. One former Atomic Wallet user said the same issue had occurred with his wallet six months ago, but Atomic only advised users to protect their passwords and use a seed phrase without offering any solutions.

Atomic Wallet is not open source, meaning that not all parts of the Atomic Wallet source code are available for public viewing. According to Crypto Briefing, open source wallets are more vulnerable to attacks and cloning than centralized wallets, making them more susceptible to bad actors.

On May 28, decentralized finance (DeFi) app Jimbos Protocol had 4,000 ETH (ethereum) worth about $7.5 million stolen. Hackers stole $3.8 billion worth of cryptocurrency in 2022, mostly through attackers believed to be affiliated with North Korea exploiting DeFi protocols, according to a Chainalysis report. Another analysis from TRM Labs revealed that while the number of incidents remained unchanged in Q1 2023, the average hack size dropped to $10.5 million, compared to nearly $30 million in Q1 2022.

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