Atomic Wallet has apparently been breached, with users on Twitter reporting complete losses of their cryptocurrency. Atomic is a non-custodial decentralized wallet, which means that users are responsible for the assets stored in the app.
“We have received reports of compromised wallets. We are doing our best to investigate and analyze the situation. As more information becomes available, we will share it accordingly,” the Atomic team said on Twitter on June 3.
Several users have commented on the post that they have suffered losses, stating that their funds have been removed from their digital wallet app. On-chain detective ZachBTX, known for tracking down stolen funds and helping hacked projects, is participating in the investigation. At press time, it is not entirely clear how the attack was carried out. Atomic claims to have over 5 million users.
God damn, All of my hard working money has been vanished from atomic wallet only!!!! This is your responsibility to secure the funds, What will happen to our funds? please do not copy paste anything here! just give all clear answer, Many users are faced with this today!!
—Tom (@Christomos03) June 3, 2023
Twitter users have also reported that funds in the Atomic Wallet app have been stolen in the past. “This happened to my BTC 6 months ago with Atomic. They just told me to protect their key, seed phrase, blah blah blah… I told them it’s not even possible! All I do is use U to trade and then move crypto out. My response was: I won’t use U anymore! Now I was right,” wrote a user in response to the post.
The attack adds to the growing list of cryptocurrency attacks that occur every week. Decentralized finance (DeFi) application Jimbos Protocol was breached on May 28, resulting in a loss of 4,000 Ether worth about $7.5 million. Tornado Cash, a decentralized cryptocurrency mixer, was also recently hacked. On May 20, a suspected hacker managed to grant 1.2 million votes to a malicious proposal, gaining full control of the protocol’s governance.
Last year there were several hacks, mainly from attackers linked to North Korea and DeFi protocols, according to a report. report by Chainalysis. Another TRM Labs analysis reveals that while the number of incidents stayed the same in Q1 2023, the median size of hacks dropped to $10.5 million, up from nearly $30 million in Q1 2022.
“Unfortunately, this slowdown is most likely a temporary respite and not a long-term trend,” TRM Labs noted, warning that only a few large-scale attacks could tip the scales again.
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