On June 2, a hack targeted Atomic Wallet, resulting in the loss of $35 million from its users. However, according to the company, less than 1% of its monthly active users were impacted by the attack. In response, Atomic Wallet and blockchain investigators have been working to track and recover the stolen funds.
Following the hack, several verified scam Twitter accounts impersonated Atomic Wallet and shared phishing links, claiming to assist users in recovering their lost funds. In addition, a pseudonymous on-chain researcher known as ZachXBT claimed to have helped a victim recover $1 million, but the details of the recovery process have not yet been disclosed.
Despite Atomic Wallet’s announcement, some users have continued to report losses, and the community has criticized the company for downplaying the extent of the damage. One user highlighted that hackers typically focus on wallets with significant funds, suggesting that the percentage of impacted users may not accurately represent the severity of the hack.
This incident emphasizes the importance of thorough research when choosing a service provider for the storage of cryptocurrency assets. It also raises questions about the narrative of “not your keys, not your coins” often promoted by crypto wallet providers like Atomic Wallet.
According to ZachXBT’s investigation, the largest individual loss in the Atomic Wallet hack was $7.95 million in Tether (USDT) on the Tron blockchain. The five largest losses amounted to $17 million.
In a separate event on June 4, a hacker took control of the mobile phone belonging to pro-XRP lawyer John Deaton. The hacker then used Deaton’s Twitter account to promote LAW tokens. Deaton and his representatives promptly warned users about the hack and advised against investing in the cryptocurrency.