Millions of dollars’ worth of cryptocurrencies have been stolen from Atomic Wallet, a popular cryptocurrency wallet that can be used on mobile devices and desktop computers. The developers of the wallet recently admitted that their users’ data had been compromised, revealing a significant security breach.
Atomic Wallet is a versatile wallet that is compatible with various platforms such as Windows, Android, iOS, macOS, and Linux. However, despite the developers’ claims of security, the recent incident has raised doubts about the wallet’s safety measures.
The theft involved over a hundred compromised addresses, with assets from several major cryptocurrencies including Bitcoin, Ethereum, Tron, BSC, Cardano, Ripple, Polkadot, Cosmos, Algorand, Avalanche, Litecoin, and Dogecoin being taken. The estimated loss is around $35 million, with the largest single loss amounting to $7.95 million USDT. Notably, ZachXBT, an on-chain detective, has identified that the five largest losses combined sum up to $17 million.
Ironically, Atomic Wallet had received prior warnings about its security vulnerabilities. In February 2021, the auditing company Least Authority cautioned that the wallet was “insufficiently secure in protecting user assets and private data.” These concerns have now been validated by the recent breach.
The incident has triggered a wave of criticism from Twitter users, some of whom claimed that funds had been stolen from the Atomic Wallet app in the past. Users have expressed their frustrations with the company’s response, citing generic advice to protect passwords and seed phrases. This has led to distrust among users and a sense of vulnerability surrounding the wallet’s security.
Furthermore, Atomic Wallet has faced additional backlash due to its association with the $BEN token, a meme coin created by “BitBoy” Ben Armstrong. The wallet’s native token, Atomic Wallet Coin (AWC), has also experienced liquidity issues, with an 8% decline in value recently.
In response to the breach, Atomic Wallet is actively investigating the incident and reaching out to affected users. The company is collecting information about users’ operating systems, software download sources, recent activities before the theft, and the location of their backup phrases. They are also collaborating with leading security firms to identify potential attack vectors.
As of now, the investigating team has not confirmed any specific details about the breach or the perpetrators. The incident serves as a cautionary tale for cryptocurrency users, highlighting the importance of choosing secure wallets and taking extra precautions to safeguard their assets.
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