Atomic Wallet, a decentralized and noncustodial crypto wallet, is under scrutiny following reports of significant losses from users on Twitter. Being a noncustodial platform, users bear the responsibility for the security of their assets.
In response to the reported attacks, Atomic’s team posted on Twitter on June 3, stating: “We are aware of compromised wallets. We’re making every effort to investigate and understand the situation, and we’ll share updates as we learn more.” Some users responding to this post allege that their funds have been entirely wiped out from the application.
ZachBTX, an on-chain investigator known for tracing stolen funds, has joined the investigation. Despite these efforts, the specifics of the attack remain unclear. Atomic Wallet boasts a user base of over 5 million.
Several Twitter users shared past experiences of having their funds stolen on Atomic Wallet. One user claimed, “I lost my BTC to Atomic 6 months ago. Despite my complaints, they merely reiterated password and seed phrase protection. I told them it wasn’t feasible! I’ve decided to stop using Atomic after this experience.”
This incident adds to a burgeoning list of weekly crypto hacks. Jimbos Protocol, a decentralized finance (DeFi) application, fell victim to an attack on May 28, losing 4,000 Ether valued at about $7.5 million. Additionally, Tornado Cash, a decentralized crypto mixer, was recently compromised when an attacker manipulated the protocol’s governance system.
A 2022 report from Chainalysis estimated crypto thefts totaling $3.8 billion, primarily from DeFi protocols and North Korea-affiliated attackers. TRM Labs’ analysis for Q1 2023 showed a decrease in the average size of hacks to $10.5 million, down from nearly $30 million in Q1 2022. However, TRM Labs warns this dip might be temporary and large-scale attacks could again raise the average.
READ: Bored Ape utility and benefits
