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Blockchain Sleuth Uncovers $35M Atomic Wallet Exploit

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  • On-chain investigator ZachXBT discovered that Atomic Wallet users suffered a loss of at least $35 million in crypto assets, with the largest victim losing $7.95 million in Tether USDT.
  • The sleuth even expressed his concern that ‌total losses could surpass $50 million as more victims were discovered.
  • Atomic Wallet confirmed the incident on Twitter and assured the public that the exploit is currently under investigation as they received reports of tokens going missing, transaction histories being wiped out, and even entire crypto portfolios being stolen.

In a recent analysis, on-chain investigator ZachXBT said Atomic Wallet users have suffered a significant loss of at least $35 million in crypto assets since June 2, 2023, with the five largest losses amounting to a staggering $17 million.

Atomic Wallet is a crypto wallet available for both mobile and desktop platforms, enabling users to store a wide range of cryptocurrencies securely. The wallet is compatible with multiple operating systems, such as Windows, Android, iOS, macOS, and Linux. It claims to have a user base of more than 5 million individuals.

The Sleuth’s $35M Exploit Revelation

According to ZachXBT, the exploit has affected over 100 addresses, leading to the theft of assets across multiple blockchain networks, including Bitcoin, Ethereum, Tron, Binance Smart Chain, Cardano, and more. He also revealed that the largest victim had incurred a loss of $7.95 million in Tether USDT. 

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The sleuth even expressed his concern that ‌total losses could surpass $50 million as more victims were discovered.

However, the on-chain investigator noted that since around $1 million has been successfully reclaimed, there is a reassurance to the community that additional information regarding the recovery process will be shared.

Moreover, ZachXBT also cautioned users against phishing scammers utilizing Atomic Wallet refund tweets. 

Recently, in the Philippines, five individuals were arrested for operating a cryptocurrency scam that targets victims that have already lost their crypto and entices them to work with them to supposedly recover the lost funds, only to steal from the victims again. 

Atomic Wallet Statement

A day after ZachXBT’s revelation, Atomic Wallet confirmed the incident on Twitter and assured the public that the exploit is currently under investigation as they received reports of tokens going missing, transaction histories being wiped out, and even entire crypto portfolios being stolen.

https://twitter.com/atomicwallet/status/1664946301815910400?s=46

Recently, Atomic Wallet disclosed that the impact/reported cases among their monthly active users is less than 1%. The most recent drain transaction was confirmed over 40 hours ago.

https://twitter.com/AtomicWallet/status/1665550651735023616

Though the report states that the exploit is now under investigation, the firm did not share the progress of the probe but still pledged to share further details soon.

Atomic Wallet’s Security Concerns

In 2021, auditing firm Least Authority did a security audit of Atomic Wallet, which revealed significant vulnerabilities posing risks to user funds and data. The audit recommends immediate notification of users, resolving issues, and conducting an independent follow-up security audit. 

“We strongly recommend that Atomic Wallet immediately notify users of the existing vulnerabilities, addressing and resolving all issues and suggestions outlined in the audit report, and conducting and publishing a full, comprehensive follow up security audit of the Atomic Wallet by an independent security auditing team once all fixes have been sufficiently implemented,” the disclosure stated. 

This article is published on BitPinas: Blockchain Sleuth Uncovers $35M Atomic Wallet Exploit

Featured Photo by Vadim Artyukhin on Unsplash

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.