Last weekend, the crypto world was rocked by a hacking incident that affected Atomic Wallet ($AWC), a popular non-custodial digital asset storage platform. 😱
Despite the company’s claim that less than 1% of its monthly active users were impacted, the attack resulted in the loss of over $35 million in various digital assets, including $BTC, $ETH, and $ADA, among others. Atomic Wallet is now working with major exchanges to block the attackers’ addresses.
At the moment less than 1% of our monthly active users have been affected/reported. Last drained transaction was confirmed over 40h ago.
Security investigation is ongoing. We report victim addresses to major exchanges & blockchain analytics to trace and block the stolen funds.
— Atomic – Crypto Wallet (@AtomicWallet) June 5, 2023
This comes on the heels of the backlash faced by Ledger, a leading hardware wallet, for potential software updates that could compromise user security (the Ledger Recover debacle). 😧
Interestingly, Least Authority raised concerns about Atomic Wallet’s vulnerabilities over a year ago in February 2022:
The Atomic Wallet devs hired Least Authority to do a security audit. Least Authority is now taking the unusual step of warning the public that user funds are at risk.https://t.co/QQroqFqSQQ
— zooko❤ⓩ🛡🦓🦓🦓 (@zooko) February 10, 2022
Atomic Wallet did give their customers and the crypto community as a whole an update last night:
Atomic is committed to helping as many victims of the recent exploit as possible. We’ve engaged @chainalysis a leading Crypto Incident Investigator. To trace stolen funds and liaise with exchanges and authorities.
— Atomic – Crypto Wallet (@AtomicWallet) June 7, 2023
We’ll keep you updated.