Bitrabo Editorial
Another addition to the list of hacking incidents in crypto and DeFi protocols this year is Atomic Wallet. Several Atomic Wallet users lost their entire portfolio, with transaction history erased from the app on June 3.
Blockchain analytic firm Elliptic found that the $35 million stolen in the Atomic Wallet hack had been traced to currency mixer Sinbad.io. This platform was also used by Lazarus Group to launder more than $100 million in stolen crypto assets.
Atomic Wallet Confirms the Hack of User Accounts
The Atomic Wallet team engaged on-chain sleuths and analytic firms to trace the funds and confirmed that hackers had hijacked their app. ZachXBT, one such sleuth, reported that the hackers had stolen over $35 million in crypto assets, with one victim losing $7.95 million in USDT.
It is important to note that Atomic Wallet is a non-custodial wallet whose terms of service do not allow liability for on-chain damages suffered by users. As such, users should be careful of fake Atomic Wallet refund tweets looking to prey on desperate users.
Investigations are Ongoing to Recover Stolen Funds
The Atomic Wallet team reported addresses to top crypto exchanges and blockchain analytic firms to trace and block the stolen funds. While the team is working tirelessly to recover the stolen funds, there is no concrete plan until the investigations conclude.
Blockchain security experts are still investigating the issue, but the latest Elliptic report shows some leads on the stolen funds have begun surfacing. Although the blockchain analytic and compliance firm did not specify the amount moved, it revealed that the hackers laundered the stolen money through crypto mixer Sinbad.io.
Sinbad.io could be a relaunch of Blender.io, another currency mixer heavily patronized by the notorious hacker organization, Lazarus Group. OFAC sanctioned Blender.io in May 2022 as one of the first crypto mixers.
Image from Pixabay and chart from TradingView.com.