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Atomic Wallet exploited, users report loss of entire portfolios - Sikaoer - The Best Crypto News Site.

Atomic Wallet exploited, users report loss of entire portfolios

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Atomic Wallet has reportedly been exploited, with users reporting complete losses of their crypto portfolios. Atomic is a noncustodial decentralized wallet, meaning users are responsible for assets stored in the application.

“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,” stated Atomic’s team in a tweet on June 3.

Several users have commented on the post reporting losses, claiming funds have been wiped from the digital wallet app. On-chain sleuth ZachBTX — known for tracing stolen funds and assisting hacked projects — is taking part in the investigation. At the time of writing, it’s unclear how the attack was carried out. Atomic claims to have over 5 million users.

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 back to protect your pw, seed phrase, blah blah… I told them NOT even possible! All I do is use U to exchange and then move crypto out. My response to them, I will use U no MORE then! Now I was right!” wrote one user in response to the post.

The attack joins a growing list of crypto hacks taking place every week. On May 28, the decentralized finance (DeFi) app Jimbos Protocol was exploited, resulting in a loss of 4,000 Ether (ETH), worth around $7.5 million. Tornado Cash, a decentralized crypto mixer, was also recently hacked. On May 20, an attacker successfully granted 1.2 million votes to a malicious proposal, gaining complete control of the protocol’s governance.

Crypto hackers stole an estimated $3.8 billion last year, mainly through North Korea-linked attackers exploiting DeFi protocols, according to a Chainalysis report. Another analysis from TRM Labs revealed that although the number of incidents in Q1 2023 remained the same, the average hack size dropped to $10.5 million from nearly $30 million in Q1 2022.

“Unfortunately, this slowdown is most likely a temporary reprieve rather than a long-term trend,” TRM Labs noted, warning that just a few large-scale attacks could tip the scales again.

Magazine: Should crypto projects ever negotiate with hackers? Probably



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