Cryptocurrency wallet provider Atomic Wallet has frozen over $2 million worth of “suspicious” deposits in cooperation with major exchanges after identifying illicit activity.
In an announcement Wednesday, Atomic said blockchain intelligence firms Chainalysis and Crystal assisted in the effort to track down and contain the illegal funds from an unspecified hack.
Most of the assets were traced back to the Tron and Bitcoin blockchains after being bridged through decentralized protocols in an attempt to obfuscate their source.
The hacker utilized mixers and complex bridging techniques but ultimately failed to cover the money trail.
Atomic extended gratitude to centralized exchanges that promptly froze funds connected to the suspicious transactions, calling their swift actions “pivotal” in mitigating the incident’s impact. The company did not name any specific exchanges involved.
A group of affected users subsequently initiated a class action lawsuit against Atomic to recover losses from the breach. It remains unclear if the new frozen funds are related to the previous hack.
By collaborating with analytics firms, Atomic demonstrates that illegitimate funds can ultimately be tracked down, even across various blockchains and obfuscation attempts.
Meanwhile, on June 20, Hackers executed a daring heist targetting Atomic wallet and making off with a whopping sum of $35 million.
The hackers executed this by using THORChain as revealed by a blockchain investigator, MistTrack.
To further complicate their tracks, the hackers used the Swift blockchain to bridge some of the pilfered ether into multiple Bitcoin addresses.
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