In a distressing turn of events, Atomic Wallet, a noncustodial decentralized wallet, has been hit with a significant breach. Users have reported major losses, saying that the cryptocurrency they held in the Atomic Wallet app has vanished without a trace.
Reports of the apparent exploitation started pouring in on June 3, leaving the Atomic team in crisis management mode. “We’re aware of the compromised wallets and are investing every ounce of our energy into analyzing this unfortunate situation,” announced the Atomic team in a tweet.
In response to the tweet, users have voiced their experiences of the sudden disappearance of their crypto assets from the wallet app. Leading the investigative effort, on-chain detective ZachBTX, famed for tracing pilfered funds and aiding hacked projects, has stepped into the ring. However, at this time, the method behind the attack remains a mystery. For context, Atomic Wallet boasts a user base of over 5 million.
Previously, Twitter users had expressed their concerns about their funds being swiped from the Atomic Wallet app. One disgruntled user shared, “Six months ago, my BTC vanished from Atomic. Their response was just to protect my password, seed phrase, and all that jazz. I use them for exchanges and move my crypto out. After this incident, I’m done!”
This attack unfortunately joins a growing tally of crypto hacks happening with increasing frequency. Earlier, on May 28, DeFi app Jimbos Protocol suffered an exploit, with a devastating loss of 4,000 Ether ($7.5 million). Moreover, Tornado Cash, another decentralized crypto mixer, recently fell prey to a hack. In total, crypto hackers pilfered a staggering $3.8 billion last year, mostly from North Korea-linked attacks on DeFi protocols. While the average size of hacks dropped in Q1 2023, industry experts are far from breathing easy, cautioning against the potential of large-scale attacks.