Atomic Wallet Restated 0.1% Affected After Hack; Disagreements Stay

The development in the instance of a hack in the software cryptocurrency wallet, Atomic Wallet, reached the official statement. June 3, 2023’s whole incident was noted in the article and the updates followed later till the time of writing. Though the blog presented the whole instance, many in the crypto space thought of it to lack some crucial information.

A blog was published on Tuesday, June 20, on the official website of Atomic Wallet with the title “June 3rd Event Statement.” It started with the day a potential hack took place on the platform—receiving reports from users complaining of “unauthorized transactions” taking place through their wallets.

June 3rd event Statement. To summarise, less than 0.1% of Atomic app users have been affected. Since then, no new cases have been reported.
None of the possible issues are confirmed as potentially causing massive breaches, at least in the latest app versions. Builds are verified… pic.twitter.com/YTcOFpo3M3
— Atomic – Crypto Wallet (@AtomicWallet) June 21, 2023

According to Atomic Wallet, their team responded to the situation quickly and spread the word to the users over social media. Further downloads and updates of the application halted to control the potential damage. The company asked for assistance with major crypto exchanges and blockchain analysis firms. Chainalysis and Crystal were also assigned with the investigation.

Earlier, TheCoinRepublic reported about the Atomic Wallet hack that took place around June 3. The company took to Twitter to inform about the crypto wallets compromised.

On-chain sleuth ZackXBT noted in its initial investigation that the mishap had cost approx $35 Million worth of assets stolen. It was also found the stolen cryptocurrencies included Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), Litecoin (LTC), Dogecoin (DOGE) and several others.

The blog continued to highlight the development in case with the team engaging to the users and investigators, and changing all the access and switching internal process “under attack mode.” The company noted possible reasons behind the incident including local users devices targeting viruses, breach of infrastructure, injecting malware code in the system, or “man-in-the-middle attack.”

Despite these assumptions, no concrete reason was said to be behind the wallet attack.

Later on around mid June, blockchain security platform, Elliptic, reported the amount stolen from Atomic Wallet to be over $100 Million. The amount was way more than the initial claim of $35 Million by ZachXBT. Elliptic also noted the frozen crypto across exchanges accounts for about $1 Million.

Reports also found the connection of the hack with the notorious North Korean hackers, Lazarus Group. Elliptic followed the stolen funds and reported it was laundered through Blender.io.

However, the Atomic Wallet report had no mention of the lost amount whether it’s $35 Million or $100 Million or anything else. Also, it did not mention the hacker group’s role in the attack. The report ended with the note of claim which the company iterated initially of “less than 0.1% of Atomic Wallet app users have been affected.” No new cases have been reported since June 3.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing