The Weekend That Rattled Crypto Believers
The hacking event, which unfolded over a dismal weekend, saw a range of digital assets from different blockchains being drained from multiple user accounts. An initial estimation put forward by on-chain investigator ZachXBT suggests that the heist crossed the $35 million mark by the following Monday.
Update: A new largest victim was found on Tron with 7.95M USDT stolen,
The five biggest losses account for $17M.
My graph has now surpassed $35M in total stolen. pic.twitter.com/eqfXkm9vlL
— ZachXBT (@zachxbt) June 4, 2023
Atomic Wallet has declared that the breach impacted less than 1% of its monthly active users. The firm is actively investigating the attack and is working in collaboration with several major exchanges to block the cyber attackers’ addresses.
Atomic Wallet’s Security Track Record Under Scrutiny
With a lineage in the crypto space tracing back several years, Atomic Wallet, developed by Konstantin Gladych, a data science and blockchain veteran, has integrated dozens of blockchains. It allows its users to stake a variety of digital assets, but recently removed a function enabling users to move seamlessly across different chains.
However, last year’s report by the Least Authority Team hinted at serious security risks, advising against the wallet’s use until sufficiently remediated. The latest hack has raised questions about the wallet’s security standards once more, particularly in light of the crash in the value of its governance token, AWC, following the breach.
The Human Impact: Users Bear the Brunt
The largest individual loss from the attack was a staggering $7.95 million in Tether. Victims include Emre, a Turkish cybersecurity expert, who lost nearly $1 million in crypto assets. Like others, he is left waiting for substantive updates from Atomic Wallet, according to Cointelegraph.
Atomic Wallet operates as a noncustodial-decentralized wallet, implying that users are solely responsible for their assets. Its terms of service clearly state a maximum liability of $50, leaving many victims in the cold.
The Crypto Industry’s Ongoing Battle With Security
The Atomic Wallet incident continues a series of concerning breaches in the crypto industry. Just last year, the crypto market faced the FTX and Alameda Research fallout, which triggered a mass migration to non-custodial wallets like Atomic Wallet and Binance’s Trust Wallet.
Hardware wallets, like Ledger, have also come under fire for potential security issues, leaving crypto investors with limited safe options. Amidst these challenges, crypto users are grappling with the vulnerabilities of Web3 products and their capacity to secure investments.
Key Points
How much was stolen from the Atomic Wallet hack?
The estimated stolen assets exceeded $35 million, according to on-chain investigator ZachXBT.
What is Atomic Wallet doing about the hack?
Atomic Wallet is conducting investigations into the attack and has engaged major exchanges to block the addresses used by the attackers.
What type of wallet is Atomic Wallet?
Atomic Wallet is a non-custodial digital asset storage platform. It allows users to store and stake a variety of digital assets.
