Multichain crypto wallet service provider, Atomic Wallet, has reportedly been compromised in an exploit that has resulted in the theft of approximately $35 million across multiple blockchain networks. The breach was first reported by users on Crypto Twitter who expressed their concerns about missing funds from their wallets, prompting an investigation by on-chain investigator ZachXBT.
As reported by ZachXBT, the stolen funds belonged to more than 100 affected wallet addresses, with assets stolen across various chains, including Bitcoin, Ethereum, Tron, BSC, Cardano, Ripple, Polkadot, Cosmos, Algorand, Avalanche, Litecoin, and Dogecoin.
The significant theft took place between June 2 and June 3, with the largest individual loss being $7.95 million in USDT. The five biggest losses combined account for $17 million.
ZachXBT has been diligently tracking the stolen funds and has identified at least $14 million in assets based on information provided by affected users. However, he estimates the total stolen funds could be significantly higher, potentially surpassing $50 million as more victims are discovered.
In the aftermath of the exploit, phishing scammers have taken advantage of the situation by posting fake Atomic Wallet refund tweets to prey on desperate victims. ZachXBT has warned the community to be cautious of these malicious tweets.
Atomic Wallet has yet to officially confirm or deny the reports but has stated that they are investigating and analyzing the situation, promising to share more information soon. Due to the lack of information and ongoing concerns, many users have moved their assets to other wallet service providers. According to Atomic’s website, it has around 5 million users.
Blockchain security firm SlowMist has suggested that the incident may have been a supply chain attack. This theory arises from the fact that Atomic’s official website was recently updated, leading to speculation that a hacker could have tampered with the software source code on the server for users to download.
The response from the community has been mixed, with some users criticizing Atomic Wallet’s security measures. A community member named Tay stated that Atomic’s “security posture sucks,” and accused the company of silencing those who raise concerns about their products and services facilitating theft.
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ZachXBT advises anyone still using Atomic Wallet to transfer their funds elsewhere until the situation is resolved.
