Multiple users have reported losses of cryptocurrency assets, claiming that funds held in the Atomic Wallet application have vanished.
Atomic Wallet has reportedly experienced a breach, resulting in users suffering complete losses of their cryptocurrency portfolios. Atomic Wallet is a decentralized, noncustodial wallet, meaning that users are responsible for the security of their assets stored within the application.
On June 3, Atomic Wallet’s team tweeted, “We have received reports of wallets being compromised. We are doing all we can to investigate and analyze the situation. As we have more information, we will share it accordingly.”
Numerous users commented on the tweet, reporting losses and stating that funds had been wiped from their digital wallet app. ZachBTX, an on-chain investigator known for tracing stolen funds and assisting hacked projects, is involved in the investigation. At present, it remains unclear how the attack was executed. Atomic Wallet claims to have more than 5 million users.
Twitter users have previously reported instances of funds being stolen from the Atomic Wallet app. One user responded to the post, saying, “This happened to my BTC 6 months ago with Atomic. They simply replied back to protect your password, seed phrase, blah blah… I told them it’s not even possible! All I do is use them to exchange and then move my crypto out. My response to them was that I won’t use them anymore! Now I’ve been proven right!”
This attack adds to the growing list of crypto hacks occurring on a weekly basis. On May 28, the decentralized finance (DeFi) app Jimbos Protocol was exploited, resulting in a loss of 4,000 Ether (ETH) valued at approximately $7.5 million. Tornado Cash, a decentralized crypto mixer, was also recently targeted by hackers. On May 20, an attacker successfully gained complete control of the protocol’s governance by granting 1.2 million votes to a malicious proposal.
According to a Chainalysis report, crypto hackers stole an estimated $3.8 billion last year, primarily through attacks by North Korea-linked hackers exploiting DeFi protocols. Another analysis from TRM Labs revealed that while 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 decrease is likely to be a temporary relief rather than a long-term trend,” cautioned TRM Labs, warning that a few large-scale attacks could once again tip the scales.