Cryptocurrency NewsAtomic Wallet’s hack statement raises user concerns amid $100m losses

Atomic Wallet’s hack statement raises user concerns amid $100m losses

Atomic Wallet’s statement about the hack has caused user concerns following losses of around $100 million. Despite releasing a detailed event statement, the decentralized wallet provider has left users wanting more clarity.

In a blog post on June 20, Atomic Wallet provided its first significant update since the exploit on June 3. They claimed that no new confirmed cases have emerged after the initial reports of the hack.

The company reiterated their previous claim that less than 0.1% of app users were affected, but this statement has been met with skepticism and criticism online.

Atomic Wallet did not disclose the exact cause of the exploit, instead presenting four potential causes, including a virus on user devices, an infrastructure breach, a man-in-the-middle attack, or malware code injection.

While none of these scenarios have been confirmed as the actual cause of the breach, Atomic Wallet mentioned that they have updated their security infrastructure.

The company also stated that they are working on an app update to improve security, which has been verified by external auditors. However, there are questions about the identity of these auditors and whether users can access their statements.

Critics have pointed out that Atomic Wallet’s list of possible causes suggests that the company has yet to fully understand how the exploit occurred.

Recent allegations from MistTrack have claimed that North Korean hackers used Atomic Wallet to launder stolen funds through smart contracts, similar to the Harmony cross-chain bridge hacking incident.

According to blockchain analytics firm Elliptic, the losses from the Atomic Wallet hack have now exceeded $100 million, highlighting the seriousness of the incident, which affected approximately 5,500 cryptocurrency wallets.

similar case: How a Trust Wallet Vulnerability Led to Nearly $170,000 Losses for Users


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