June 7, 2023
By Anjali Kochhar
In a shocking turn of events, the developers of Atomic Wallet are currently investigating a large-scale theft of cryptocurrency from users’ wallets, resulting in the loss of over $35 million.
Atomic Wallet, a popular mobile and desktop crypto wallet that supports various cryptocurrencies, including Bitcoin, Ethereum, and many others, has attracted a wide user base across multiple operating systems.
On June 3, Atomic Wallet took to Twitter to address the alarming reports, stating that they had received numerous complaints regarding compromised wallets. The team promptly initiated an investigation into the matter, striving to determine the scope and nature of the incident. They assured users that they would share more information as it became available.
Today, Atomic Wallet disclosed that they are collaborating with renowned third-party security companies to intensify the investigation and impede the stolen funds from being liquidated on exchanges. Their dedicated team is diligently exploring potential attack vectors, striving to identify the root cause of the breach. Furthermore, they have taken precautionary measures by temporarily shutting down their download server, ‘get.atomicwallet.io,’ to prevent any further spread of potential compromises.
Blockchain expert ZachXBT has been tracking the transactions associated with the Atomic Wallet victims and has revealed that the stolen funds tally over $35 million. These ill-gotten gains include various cryptocurrencies such as Bitcoin, Ethereum, Tron, Binance Smart Chain, ADA, Ripple, Polkadot, Cosmos, Algorand, Avalanche, Stellar, Litecoin, and Dogecoin.
According to crypto security researcher Tay, the earliest transaction related to the stolen Atomic Wallet assets occurred on Friday, June 2nd, at 21:45 UTC. Users began reporting the theft on Saturday morning via social media platforms and the developer’s Telegram channel, sharing their unfortunate experiences of losing cryptocurrency from their Atomic Wallets.
To aid in the investigation, Atomic Wallet is actively collecting information from affected users. They are requesting details such as the operating system used, the source of software download, actions performed prior to the theft, and the storage location of backup phrases. A Google Docs form has been created for victims to submit this crucial information.
While some victims attribute the theft to a recent software update, others claim that they were targeted despite not having performed any updates. As the developers delve deeper into the security incident, users are advised to transfer their crypto assets to alternative wallets as a precautionary measure.
BleepingComputer reached out to Atomic Wallet for further clarification on the attack, but a response was not immediately available.
The Atomic Wallet theft serves as a stark reminder of the constant risks associated with the storage and management of cryptocurrency. Users are urged to exercise caution, employ additional security measures, and remain vigilant to safeguard their valuable digital assets.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
