Over $35 Million Reportedly Stolen From Atomic Wallet Users

Atomic Wallet, a popular cryptocurrency wallet service, has been hit by a devastating security breach, resulting in the theft of over $35 million worth of digital assets from its users. The incident has left distraught users questioning the company’s claims and seeking answers regarding the security of their funds.

The Grim Discovery

The week began on a somber note as reports emerged of a large-scale theft of digital assets from Atomic Wallet users. Pseudonymous on-chain sleuth ZachXBT uncovered that the largest individual loss amounted to a staggering $7.95 million in Tether (USDT) on the Tron blockchain. Further investigations revealed that the total losses suffered by the five biggest victims reached a staggering $17 million. The gravity of the situation suggests that the total amount stolen may have surpassed $35 million, leaving many users in financial turmoil.

Distressed users turned to social media, particularly Twitter, to express their concerns and challenge Atomic Wallet’s claims. The company had assured its users that it was working with leading security firms and seeking assistance from organizations to trace the stolen funds. However, some community members disputed the company’s statements, questioning the effectiveness of its security measures.

As of now, Atomic Wallet has not announced any plans for compensating the affected users. Furthermore, the company has been unable to determine the root cause of the security breach. While some users reported the theft of their assets after a recent software update, others claimed to have been affected despite not updating to the latest version. The absence of concrete information and assistance from Atomic Wallet has added to the frustration and anxiety among its user base.

Resurfacing Red Flags

The recent incident has brought attention to a security disclosure from February 2022 that highlighted various vulnerabilities in Atomic Wallet. A security audit conducted by Least Authority’s research team in March 2021 identified significant risks in the wallet’s system design. Although Atomic Wallet acknowledged the issues and promised updates, many of the problems remained unresolved. The report strongly recommended against the deployment and use of the Atomic Wallet until the vulnerabilities were adequately addressed and subsequent security audits conducted.