In an effort to alleviate the mounting apprehension surrounding the June 3rd event, Atomic Wallet proactively utilized Twitter to confront the situation head-on and issue an official statement. On June 21, Atomic Wallet resorted to Twitter again to provide an updated and more explicit account, revealing that an insignificant fraction of Atomic app users, specifically less than 0.1%, fell victim to unauthorized transactions.
By emphasizing that no additional incidents were reported after the initial accounts on June 3rd, the company sought to reinforce their commitment to security and regain trust.
Atomic Wallet is currently conducting an ongoing investigation into the breach, but no specific cause has been definitively identified. To assist in the investigation, Atomic Wallet sought the expertise of renowned crypto investigators Chainalysis and Crystal.
The dedicated support team at Atomic Wallet worked diligently to collect user reports, process data, and share crucial information with these investigative firms. Chainalysis and Crystal closely monitored transactions and collaborated with exchanges and relevant authorities.
During the investigation, it was discovered that the funds involved in the unauthorized transactions were being mixed and laundered through various services and smart contracts. However, a significant portion of these transactions remained traceable.
In response to the Twitter post, the Twitter community, including Atomic Wallet users and crypto enthusiasts, countered the company’s statement saying it is just a “Cover-up”
“I feel that hackers got access to our seed phrases that are hidden on our wallets, because of the @AtomicWallet security flaws in the latest application”.
The statement released on Twitter was an initial response to the incident, intended to address concerns and reassure affected users. However, the community still has lingering questions as they eagerly await more details on the ongoing investigation and the steps being taken to prevent similar incidents in the future.
June 3rd Breach
On June 3, 2023, news broke that Atomic Wallet users had fallen victim to a crypto asset theft totalling at least $35 million. Twitter user ZachXBT, known for uncovering stolen cryptocurrencies and aiding hacked projects, conducted an independent investigation. The investigation revealed that the largest victim lost $7.95 million in Tether, with the total losses potentially exceeding $50 million. “Unfortunately, we continue to discover more and more victims,” lamented ZachXBT.
Atomic Wallet has so far provided its users with limited information. The support team collected the victim addresses. The event adds to a long list of cryptocurrency hacks. The Jimbos Protocol’s $7.5 million exploit and the malicious proposal that gained control of Tornado Cash’s governance are the two most recent examples.