On June 3, Atomic Wallet acknowledged users’ wallets were compromised after reports of stolen funds. In an update on June 5, the firm said that less than 1% of its monthly active users were affected or reported being affected by the hack.

The firm added that it was still investigating the security breach and its cause, and victims’ addresses are being reported to major exchanges and blockchain analytics platforms to track and block the stolen funds.

On-chain sleuth ZachXBT pegged the total losses at over $35 million. Multiple crypto-assets were stolen, including Bitcoin (BTC), Ethereum (ETH), and Tron (TRX), among others.

According to ZachXBT, the most significant loss suffered by a single individual amounted to $7.95 million Tether (USDT). He noted that the five biggest losses accounted for $17 million, or approximately half of the total stolen funds.

He later thanked Jito Labs, a Solana infrastructure company, for help in the recovery of $1 million from the attacker.

In 2021, Least Authority conducted a security audit of Atomic Wallet, noting the platform was “insufficiently secure” and placed users at “significant risk.” It reported that the response from Atomic Wallet, including the commits provided, still left many issues and suggestions unresolved.

Atomic Wallet has yet to make a public comment on compensating victims.

ZachXBT warned that scammers are trying to capitalize on the situation by luring victims with fake promises of refunds, including one example of a gold check marked Twitter account with the name “Atomic – Crypto Wallet.”

The post Atomic Wallet claims hack affected less than 1% of monthly active users appeared first on CryptoSlate.

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Filed under: Bitcoin - @ June 5, 2023 9:15 am