By Michael Scott
Atomic Wallet update reassures the users’ community that in-house security personnel seeks to establish the attack’s reason and extent. Various reports have highlighted issues such as lost tokens, erasing of transaction data, and damage to the whole crypto portfolio.
Loss From Atomic Wallet Hack Set to Exceed $35M
ZachXBT, an on-chain investigator, claims that since June 2, Atomic Wallet users have lost crypto assets worth at least $35 million. The five biggest losses are worth $17 million.
Via Twitter, Atomic Wallet claims that investigations are ongoing to establish the reason behind the attack. Prevailing reports have highlighted issues such as lost tokens, the erasure of transactional histories, and the theft of whole crypto portfolios.
ZachXBT plays a critical role in tracking stolen crypto funds and hacked projects. Its recent independent investigation revealed that the biggest victim suffered a loss of $7.95 million in Tether (USDT). ZachXBT believes that the loss would exceed $50 million since it keeps finding more victims.
Atomic Wallet Unable to Compensate Victims of Recent Hack
Atomic Wallet believes it has more than five million users across the globe. An interview with Emre reveals that the security breach currently affects the loyal client. He claims that he feels disappointed since he is a cybersecurity expert. Besides, he claims that he lost an estimated $1 million, which includes Bitcoin.
Emre decries that nothing concrete has been established despite claims that the matter is being investigated. The funds presently held at Atomic Wallet were to fund the development of a cybersecurity organization in Turkey.
Since Atomic is a noncustodial-decentralized wallet, its users are responsible for all the assets the application stores. According to the Terms of Service, any liabilities concerning on-chain damages users suffer are unacceptable. Specifically, Atomic Wallet does not compensate for damages attributed to services surpassing $50.
Several leading security organizations have partnered to conduct investigations. Despite the absence of concrete findings on the attackers’ identity, the team is trying to establish probable attack vectors.
Atomic Wallet Hack Portray the Vulnerability of Decentralized Platforms
Atomic Wallet has offered scanty information to users. According to a tweet posted dated June 4, the organization claimed that its support team is gathering victims’ addresses and trying to track and block the stolen funds by contacting major blockchain analytics organizations and exchanges.
Persons contacting the organization must answer more than 20 queries concerning using private networks (VPNs), internet providers, and seed phase storage.
Via Telegram’s community platforms, some individuals claimed that an out-of-date dependency package was the source of the exploit. Dependency packages refer to the link between the activities to be executed within a program, which includes the order of execution and the libraries required for their implementation.
Preliminary Analysis Links Atomic Wallet’s Exploit to North Korea Hackers
This attack is just one of the organizations affected by crypto hacks. Examples of cases reported in the past include a malicious proposal that took control of the governance of Tornado Cashback in May and Jimbo’s Protocol exploits amounting to $7.5 million.
According to the Chainanalysis report, crypto hackers were involved in the theft of $3.8 billion last year. The utilization of Tornado Cash mirrors previous heists orchestrated through the North Korean-associated attacks that exploit vulnerabilities of decentralized finance procedures.
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