The project’s team stated that less than 1% of monthly active users were affected by the attack

​Atomic Wallet users lose $35 million in wallet hacks

05.06.2023 - 07:25

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3 min

What’s new? On June 3, cryptocurrencies worth at least $35 million were stolen from Atomic Wallet crypto wallet users, an on-chain sleuth under the nickname ZachXBT reported. According to his data, the largest loss of one customer was $7,95 million in Tether (USDT) stablecoins. That said, ZachXBT suggested that the losses could exceed $50 million as it continues to find new victims of the exploit.

What else is known about the hack? While the Atomic team is investigating the cause of the attack. There have been reports of lost tokens, erased transaction history, and the theft of entire crypto portfolios. On June 5, representatives of the wallet said that less than 1% of monthly active users were affected by the exploit. The last fraudulent transaction was confirmed more than 44 hours ago.

The service team collects victims’ addresses and passes them on to major crypto exchanges and analytics companies to track and block the stolen funds.

A developer from Turkey, who is a longtime client of Atomic, told Cointelegraph that he lost almost $1 million in cryptocurrencies earned through Bug Bounty programs (paying rewards to “white hat” hackers who discovered a vulnerability in the code of any project). The stolen tokens include BTC, DOGE, LTC, ETH, USDT, USDC, BNB, and MATIC.

According to Emre, the Atomic team told him that they are looking into the case, but they do not have anything concrete yet. He said he was planning to put the funds towards setting up a cybersecurity firm in Turkey.

Atomic is a noncustodial wallet, meaning its users are responsible for the assets stored in the app themselves. Its terms of service do not include any liability for damage to customers. “Under no circumstances will Atomic Wallet be liable to you for damages arising out of the services exceeding $50,” the wallet’s website states.

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The company’s CEO said that hardware wallet makers “should, at no stage, make the seed phrase accessible to anyone but the user”

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According to De.Fi, crypto investors’ losses from hacking and scam in May totaled $54 million, with no refunds made to victims. By comparison, April’s losses were $101,5 million and compensation was $2,2 million.

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