Hackers tied with Atomic Wallet Exploit stole over $100 Mln in crypto: Report

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Key Takeaways

  • Elliptic has attributed the infamous North Korean hacker group-Lazarus behind the exploit
  • Approximatley 5,500 crypto wallets compromised in the hack

Atomic Wallet, a noncustodial decentralized wallet, has suffered a devastating exploit, resulting in users reporting significant losses of their entire cryptocurrency portfolios. The exploit, which occurred on June 3, has now led to the hackers gaining over $100 million in stolen crypto, according to blockchain analytics firm Elliptic.

The heist initially targeted Atomic Wallet, resulting in the theft of approximately $35 million worth of digital tokens. However, Elliptic has attributed the attack to the infamous Lazarus Group, a cybercrime syndicate responsible for stealing over $2 billion through their extensive hacking campaigns.

The scale of the losses has now increased nearly threefold, highlighting the severity of the breach. An estimated 5,500 crypto wallets were compromised, leaving affected users in distress. Despite the magnitude of the incident, Atomic Wallet has not provided any explanation for the substantial losses, leaving customers frustrated and anxious for clarification and reassurance.

On June 7, Atomic Wallet acknowledged the reports of compromised wallets in a tweet, downplaying the impact by stating that “less than 1%” of its user base had been affected. However, the staggering sum stolen suggests a significant breach. Atomic Wallet distinguishes itself as a noncustodial mobile wallet, allowing users to retain control over their private keys without relying on a custodian.

Elliptic’s identification of the Lazarus Group as the perpetrators mark the first time a major crypto heist has been openly attributed to them since their $100 million exploit of Horizon Bridge in June 2022. In response to the incident, Elliptic has partnered with international investigators and exchanges to trace and freeze the stolen funds. Their efforts have already resulted in over $1 million worth of assets being frozen.

In a concerning development, the hackers have adapted their tactics by utilizing the Russia-based Garantex exchange, a sanctioned platform, to launder the stolen assets, as reported by Elliptic.

Also read, 3 AI cryptos you Just Cannot miss at all!

The latest development also comes amidst security breaches in the Defi space becoming increasingly common. Last month, Jimbos protocol, an Arbitrum-based DeFi app faced an exploit resulting in a loss of 4,000 Ether. 

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Saniya Raahath
Saniya Raahath

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