Atomic Wallet suffered a security breach, resulting in the theft of $35 million in various cryptocurrencies. The siphoning of funds started on June 2, and according to Atomic Wallet developers, less than one percent of its monthly active users were affected.

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

Hacks Are Targeting Big-Ticket Wallets

The stolen tokens include Bitcoin, Ether, Tether, Dogecoin, Litecoin, Binance Coin, and Polygon. According to an independent blockchain analyst, Tron-based Tether was the largest stolen stash of cryptos, amounting to 7.95 million USDT. The largest five losses amounted to $17 million.

Update: A new largest victim was found on Tron with 7.95M USDT stolen,

The five biggest losses account for $17M.

My graph has now surpassed $35M in total stolen. pic.twitter.com/eqfXkm9vlL

— ZachXBT (@zachxbt) June 4, 2023

Atomic Wallet provides non-custodial centralized crypto storage and wallet services. It is popular for facilitating the anonymous exchange of dozens of crypto assets. Though the number of users of the wallet platform is unknown, its website claims that it has more than 5 million users.

Another Crypto Hack

The wallet's developers publicly admitted the security breach on June 3, mentioning that: "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."

A consecutive tweet confirmed that the developers were working with third-party security companies to investigate the incident. One of their main focus was to stop the attackers from selling the stolen funds on crypto exchanges.

Though the methodology of the attack is yet to be discovered, some Atomic Wallet users reported that they lost the funds after a software update. However, several pointed out that they never updated their wallet app and still lost crypto holdings. The developers are now seeking information from the victims through a Google Docs form.

Since the breach, the team behind Atomic Wallets has taken down the download servers across all platforms.

The official tweet did not mention the number of victims or verify the stolen amount mentioned by the independent analysts.

Meanwhile, independent researchers are helping the recovery of stolen funds, as one of the victims received $1 million back from the attacker.

A huge shoutout goes to @buffalu__@brian_smith_0 for helping us successfully rescue $1m from the Atomic Wallet hacker for one of the victims.

— ZachXBT (@zachxbt) June 4, 2023

Further, scammers are trying to dupe the Atomic Wallet victims. A fraudulent Twitter account with a golden tick surfaced, sharing a phishing link to trap the victims of the Atomic Wallet.

⚠️ Careful phishing scammer with gold checkmark in the replies ⚠️ pic.twitter.com/kxWDGDXeK7

— ZachXBT (@zachxbt) June 5, 2023

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