Atomic Wallet Hacked, Resulting in $35 Million Crypto Theft

Cybercriminals stole millions of dollars’ worth of cryptocurrencies from users of Atomic Wallet, a popular cryptocurrency wallet that can be used on desktop computers and mobile devices. Atomic Wallet’s developers confirmed that the platform’s users’ data had been compromised.

Atomic Wallet is available on various platforms such as Windows, Android, iOS, macOS, and Linux, all of which support the wallet.

Atomic Wallet Hacked, Resulting In $35 Million Crypto Theft

Atomic Wallet Hack: What Was Lost?

On Twitter, Atomic Wallet announced that they had received several reports of account breaches from their users. Over one hundred addresses were affected, resulting in the theft of assets such as Bitcoin, Ethereum, Tron, BSC, Ripple, Cardano, Polkadot, Cosmos, Algorand, Avalanche, Litecoin, and Dogecoin. Early reports indicate that the total amount stolen amounts to approximately $35 million, with the largest loss reported at $7.95 million USDT. The five biggest losses totalled to $17 million.

Source: Atomic Wallet Stolen Fund (Source: ZachXBT)

Early Warning Signs

Atomic Wallet stores users’ private keys locally on their devices and encrypts them, which the company believed made their product more secure. However, the recent security breach has proven otherwise. Least Authority, an auditing company, had warned Atomic Wallet several times since February 2021 that this method was “insufficiently secure in protecting user assets and private data.”

Many Twitter users claimed that prior to this incident, funds had already been stolen from the Atomic Wallet app. One user remarked that despite Atomic Wallet’s long history, it was still vulnerable to hacking.

Liquidity Problems & Criticisms

Recent criticisms related to Atomic Wallet include liquidity problems with Atomic Wallet Coin (AWC), which plummeted 8%, and the sale of the $BEN token, created by BitBoy Ben Armstrong. Atomic Wallet is currently surveying victims and working with security firms to identify potential attack vectors.

-Featured image from DayFR Euro

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