The Attack on Atomic Wallet
The security breach on Atomic Wallet reportedly led to the loss of millions of dollars in cryptocurrency from numerous users. Primarily, the incident came to light when a wave of Twitter accounts claimed that their wallets’ contents had been drained of funds, sparking panic among the crypto community.
Atomic Wallet, which has been around since 2017, has over 5 million downloads, according to its website. The platform prides itself on its security features, as it does not have access to users’ private keys, which are encrypted and stored on their devices. However, this recent attack has raised concerns regarding the wallet’s security.
As of now, Atomic Wallet has not been able to confirm how the attacks took place. However, the company is actively working with leading security companies on an investigation. They have also reached out to major exchanges and blockchain analytics companies to help trace the stolen funds.
In response to the attack, Atomic Wallet’s CEO, Konstantin Gladych, has acknowledged the compromise and assured users that the company is doing everything it can to investigate the vulnerability and ensure the safety of users’ assets moving forward.
Losses and Recovery Efforts
The attack on Atomic Wallet has resulted in significant losses for many users, with over $35 million worth of stolen funds reported as of now. One user reportedly lost nearly $8 million worth of the stablecoin Tether (USDT) due to the incident.
Blockchain investigator ZachXBT has been working to identify and track the stolen funds. According to his findings, the five biggest losses account for nearly half of the stolen funds identified so far. In collaboration with Jito Labs’ pseudonymous CEO Buffalo and an employee at the MEV infrastructure company, ZachXBT has managed to help rescue $1 million worth of funds for one of the victims.