There are indications that $35 million worth of digital assets have been stolen from users of Atomic Wallet since June 2. This is as per a revelation from ZachXBT, an on-chain sleuth. The project acknowledged the exploit on Saturday, saying that they had received a report that wallets were being compromised. The Atomic wallet team said that it was investigating the security breach of its platform.
The Twitter post announcement from Atomic Wallet said,
“We have received reports of wallets being compromised. We are doing all we can to investigate and analyze the situation. As we have more information, we will share it accordingly.”
It added that the attack affected less than 1% of its monthly active user wallet addresses and that the last attack was reported more than 48 hours ago.
The self-custodial wallet boasts top-notch security and actively encourages crypto users to stick with self-custody.
A string of losses
The attack became obvious after account after account announced that their wallets were compromised on Saturday. One of the victims reported that they lost $8 million in USDT. In response to one of the tweets made by Coingecko, another user said that they lost 31 bitcoins in the attack.
“I lost 31 btc in this hack and 80% of my xdefi, which was my moonshot for next cycle. I really thought @xdefi_wallet was going to make me rich. I’m pretty devastated,” wrote a Twitter user with the username @thekiloalpha.
Atomic wallet has more than 5 million downloads, according to information available on the website. The platform, which started operations in 2017 as an atomic swap platform, has Konstantin Gladych as its CEO. Gladych is also the CEO of Changelly.
The company has not been able to figure out what happened or how it happened at the time of reporting. What is certain is that some users had their funds drained from their Atomic wallets. Atomic wallet has told users and the crypto community that it is working around the clock to unravel the circumstances behind the losses. It wrote:
“The security investigation is ongoing. We report victim addresses to major exchanges and use blockchain analytics to trace and block the stolen funds.”