Atomic Wallet Provides Hack Update: Less Than 0.1% of Users Impacted

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Key takeaways:

  • Atomic Wallet described the June 3 attack as affecting only 0.1% of customers.
  • The project team claims that applications have undergone external audits and that security infrastructure has been updated.

Users of Atomic Wallet, the recently attacked project, have reported losses of up to $100 million due to the project’s issue.

Atomic Wallet released an update on the June 3 attack in a blog post on June 20, noting that fewer than 0.1% of Atomic app users had their information exposed and that no new complaints had been made since then.

The team will keep working with exchanges, regulators, and crypto detectives to track down and freeze suspicious transfers. The next step will be establishing a legal framework for recovering funds and allocating them to support stage users.

Atomic Wallet only listed the four “probable” causes of the exploit, including a virus on user devices, a security compromise in the infrastructure, a man-in-the-middle attack, or malware code injection.

However, none of the fundamental weaknesses, at least in the most recent software version, have been demonstrated to result in a significant breach. The project team claims that applications have undergone external audits and that security infrastructure has been updated.

Additionally, Atomic Wallet stated that a security update for the app is in the works and has been approved by outside auditors. But there have been some issues with the June 20 statement’s specifics.

Yevhenii Bezuhlyi, a former smart contract audit lead at cybersecurity company Hacken, inquired as to the identities of the “external auditors” indicated and the locations of their statements. He added that the justification offered in the public announcement is an excuse and that the real motive is being concealed.

The majority of the user funds, which may still be traced, were alleged to be laundered and mixed, according to Atomic Wallet. It stated that the inquiry was still ongoing and enlisted the assistance of the blockchain analytics companies Chainalysis and Crystal Blockchain.

However, several parts of the proclamation have sparked controversy. Some individuals questioned the integrity of the claim, while others thought 0.1% was a farce and the harm caused by the attack was too enormous.

According to Elliptic Investigations, the damages from the Atomic Wallet theft have already exceeded $100 million. This alarming figure emphasizes the severity of the attack, which is thought to have affected 5,500 cryptocurrency wallets.

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