Crypto Users Report Losses After Atomic Wallet Compromised

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Jeff Horseman
Jeff Horseman
Jeff Horseman got into journalism because he liked to write and stunk at math. He grew up in Vermont and he honed his interviewing skills as a supermarket cashier by asking Bernie Sanders “Paper or plastic?” After graduating from Syracuse University in 1999, Jeff began his journalistic odyssey at The Watertown Daily Times in upstate New York, where he impressed then-U.S. Senate candidate Hillary Clinton so much she called him “John” at the end of an interview. From there, he went to Annapolis, Maryland, where he covered city, county and state government at The Capital newspaper. Today, Jeff writes about anything and everything. Along the way, Jeff has covered wildfires, a tropical storm, 9/11 and the Dec. 2 terror attack in San Bernardino. If you have a question or story idea about politics or the inner workings of government, please let Jeff know. He’ll do his best to answer, even if it involves a little math.
  • Since Atomic is a non-custodial decentralized wallet, its users bear full responsibility.
  • The particular mode of attack is still unclear and the team is still investigating.

Users on Twitter have reported losing their entire cryptocurrency holdings after using Atomic Wallet, suggesting that the wallet has been compromised. Since Atomic is a non-custodial decentralized wallet, its users bear full responsibility for their funds.

Atomic’s team on Twitter stated:

“We have received reports of wallets being compromised. We are doing all we can to investigate and analyse the situation. As we have more information, we will share it accordingly.”

ZachBTX Helping With the Probe

Several others have commented on the page saying they lost funds because their digital wallet app was hacked. ZachBTX, an on-chain investigator renowned for tracking down stolen cash and aiding compromised projects, is helping with the probe.

As of the time this article was written, the particular mode of attack is still unclear. Atomic claims that there are more than 5 million people now registered. In the past, users of the Atomic Wallet app on Twitter have expressed their dissatisfaction with the fact that their funds were stolen.

Furthermore, the assault is only one of several crypto hacks that happen weekly. On May 28, a vulnerability was found in the Jimbos Protocol Decentralized Finance (DeFi) protocol, leading to the theft of 4,000 Ether, or almost $7.5 million.

Also recently compromised was the decentralized cryptocurrency mixer Tornado Cash. On May 20th, an attacker gained complete control of the protocol’s administration by securing 1.2 million votes for a fraudulent proposal.

Moreover, according to a survey by Chainalysis, hackers stole an estimated $3.8 billion in crypto assets in 2022, most of it from North Korean-linked attacks using DeFi protocols. 

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