The Atomic Wallet Hack: Millions in Crypto Stolen

Introduction

The recent crypto news has reported the hacking of several Bitcoin and crypto wallets of Atomic Wallet, resulting in the loss of millions of dollars worth of cryptocurrency. In this article, we will explore this incident in greater detail, including the extent of the damage, the response of Atomic Wallet’s team, and the reactions of affected users.

Bitcoin Wallet Hack Causes Millions in Damage

According to blockchain security expert ZachXBT, more than $35 million worth of cryptocurrency has been stolen from the affected wallets. The worst-hit victim lost more than $3.5 million in the form of 1,897 Ethereum (ETH). The top five losses add up to $17 million, indicating that a limited number of wallets were affected. Atomic Wallet’s team now confirms this, stating that less than 1% of their monthly active users reported an attack. The last drained transaction was confirmed over 40 hours ago.

Anger Among Crypto Wallet Users

However, some Atomic Wallet users have accused the company of downplaying the situation. According to them, the mere 1% figure doesn’t matter because the hacker focused only on wallets with substantial cryptocurrency holdings. Atomic Wallet has responded by saying that the investigation is ongoing, and they will report victim addresses to major exchanges and use blockchain analytics to trace and block the stolen funds.

The Investigation Continues

The situation remains fluid, and various experts, including ZachXBT, are working to recover the stolen funds. ZachXBT has been able to recover $1 million worth of crypto and is continuing his investigation. He has not yet revealed his methods for recovering the funds.

This hack comes at a time when the security of crypto wallets is under scrutiny, with the hardware wallet manufacturer Ledger also under fire. It had to postpone the launch of a new service that would save users’ private keys externally after allegations that it had included a backdoor in its wallets. Ledger denies this, but it shows the need for crypto investors to remain vigilant regarding their security practices.

Conclusion

The Atomic Wallet hack has shown the vulnerability of even the most secure crypto wallets. The fact that less than 1% of Atomic Wallet’s monthly active users were affected does not mean that the remaining 99% are safe from future attacks. Nevertheless, Atomic Wallet’s response demonstrates its efforts to stop any further losses by using blockchain analytics. The situation will likely continue to unfold, with experts working to recover stolen funds and Atomic Wallet potentially implementing further security measures.