Hackers Steal about $100M from Users of Atomic Wallets

Hackers from North Korea swiped about $100 Million from the users of Atomic Wallet, and still, the company has not provided a valid explanation for the users’ worry. Furthermore, the company didn’t warn its users about their safety despite knowing they were hacked.

Atomic Wallets do Not Provide Any Explanations

Users of Atomic Wallet have reported losing their entire cryptocurrency holdings as a result of a shocking exploit. Atomic Wallet is a non-custodial decentralized wallet. Its core idea depends on the company taking complete responsibility for safely storing the user’s assets; hence; this unanticipated leak has shocked the crypto community.

According to a study done by Elliptic, the losses from the Atomic Wallet robbery have now escalated to over $100 million. This disturbing number highlights how serious the hack is, which affected an estimated 5,500 cryptocurrency wallets.

Atomic Wallet has not yet offered any explanation for the cause of these huge losses, despite the severity of the issue. As a result, users who are disappointed are growing more worried, impatiently awaiting clarification and assurance from the organization. The business’s most recent tweet as of the time of writing was from June 7.

Atomic Wallet’s displeased users have vented on Twitter. Ezra Carlson tweeted, “Why won’t AM give me a straight answer about why they didn’t warn me, knowing full well that they were being hacked, that it was not safe to use AM last week before I made a transfer to my wallet that was then hacked.” Carlson included Atomic Wallet in his tweet.

“Real Deal Crypto,” a different user, criticized Atomic Wallet for failing to provide updates on the matter, adding, “Your last update was five days ago – SERIOUSLY?!?”

The reports of compromised wallets were recognised by Atomic Wallet in a tweet on June 3, but the company minimized the significance of the incident. The company claimed that “less than 1%” of its user base had been impacted. The incredible amount of losses, however, raises the possibility of a serious breach.

Elliptic has connected the theft to the infamous Lazarus Group, which is thought to be behind some robberies totalled over $2 Billion in crypto assets. Since its $100 million Horizon Bridge hack in June 2022, this disclosure, according to Elliptic, is the first time a sizable crypto theft has been explicitly attributed to the Lazarus Group.

Elliptic revealed it was working with international investigators and exchanges and using its capabilities to retrieve the stolen assets after the crime. The business claims its efforts have so far led to nearly $1 Million in stolen cash freezing. The blockchain analysis firm did, however, observe that the thief had started to adjust their behavior due to the freezing of these monies. They have used the Garantex exchange in Russia to hide the stolen funds.