Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. The harsh reality that the Atomic Wallet got hacked recently has impacted many people, and here I will be looking at exactly what happened.
Hack Discovered
On the 3rd of June it was revealed that reports of the Atomic Wallet being hacked had been received by their support team. A tweet was sent out to inform any users with concerns to contact them immediately. Atomic Wallet was known as a trusted decentralized wallet, having over five million users, and an excellent rating on Trustpilot of 13,000 positive reviews.
ZachXBT Investigates
Well known on-chain sleuth ZachXBT, who in the past has managed to help other victims of blockchain cybercrime, was quick on the scene to offer his services in helping track down the stolen funds. He contacted one of the victims impacted by the hack and requested more information regarding what had happened, as shown in the tweet below. Once he had the key information, such as the transaction hash, he set off to do what he does best.
ZachXBT is known to have assisted authorities in the past when tracking down stolen funds, so immediately this user will have felt some relief in knowing the best in the business was there to assist. In an updated tweet, he was able to provide information that apparently over $35 million has been stolen, with $1 million so far recovered from the Atomic Wallet hacker. The largest victim of the attack is apparently known to have lost over $3 million in USDT, although there has been other claims that the largest loss was in fact around $7.95 million.
WU Blockchain
In terms of how the hack took place, it was tweeted by WU Blockchain that the hack was potentially part of a supply chain attack. This is when hackers tamper with the software source code on the server and then ordinary users download this code. The biggest point that led them to believe this was that the website had just undergone a major update.
This has not been the only issues for Atomic Wallet of late, as its native token, the Atomic Wallet Coin (AWC), has since crashed around 8% due to the hack, while many have also been quick to criticise them for listing $BEN, the memecoin which has been pushed by BitBoy, Ben Armstrong. Some users have also made claims on Twitter that they had their funds stolen in the past and that the wallet provider did nothing to help them at the time. Lots of bad light and publicity being poured onto Atomic Wallet for sure, and hopefully the investigations continue to help those who lost their funds.
Scams Start Quick
Already many have seen an opportunity to make their own money from the scam, with tweets such as this one below claiming to be part of a refund feature looking to prey on the generosity of users.
Seems like tough times for any Atomic Wallet users, and another blight on the DeFi space. Beware of the malicious users trying to steal even more funds.
Have a great day.
Peace. CryptoGod-1.
** I first posted this story on Medium on the 5th of June 2023, which can be found here: https://medium.com/@1r3n9project/atomic-wallet-hack-6aed171abb50?sk=7bd09aee9053cc0d3ac41118342bb580 **
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