In an alarming development, users of the popular Atomic Wallet reported a major security breach that resulted in the complete loss of their digital assets. The incident shocked the cryptocurrency community and highlighted the ongoing challenges and risks involved in protecting digital assets.This article will go into more detail about that atomic wallet compromisecorporate response, user experience, and the broader landscape of cryptocurrency hacks on the rise.
Unexpected atomic wallet compromise
Atomic Wallet, a decentralized non-custodial wallet application, has reportedly been compromised, resulting in the complete loss of cryptocurrency held by a large number of users. This information was shared by the user himself on his Twitter, expressing his dismay at the sudden disappearance of his digital assets.
https://twitter.com/zachxbt/status/1665080799253733377?s=20
Atomic Wallet, a platform that allows users to store their own cryptocurrencies, recently experienced a security incident that resulted in an estimated $10 million loss in user funds. Many users took to Twitter to express their frustration, stating that crypto assets stored in Atomic Wallets had mysteriously disappeared. The exact number of customers affected by this compromise has not been confirmed. Some users have not reported any losses, but they may need to move their assets to play it safe.maximum loss report 2.8 million Tether (USDT) tokens by one user.
At this time, the exact strategy employed by the attackers is not fully understood. I have a suggestion. supply chain attack An attacker could modify the software source code on the server that the user downloaded. Interestingly, the wallet had undergone a major version update a month before his breach.
Company Response and Investigation
https://twitter.com/AtomicWallet/status/1664946301815910400?s=20
With a user base of over 5 million, Atomic Wallet is Confirmed The team said it had received reports that the wallet had been compromised and was actively investigating the situation. They promised to share more information as it becomes available. However, the exact method of attack is still unknown at the time of reporting.
User experience and past incidents
Several users responded to Atomic Wallet’s post and shared their experience of losing funds from the app. One user, known as ZachBTX, who is known for tracking stolen funds and assisting hacked projects, participates in the investigation.
Rising Trend of Cryptocurrency Hacking
The incident joins the list of increasingly frequent cryptocurrency hacks. For example, the Jinbos Protocol, a decentralized finance (DeFi) app, was exploited on May 28th, leading to a loss of 4,000 Ether worth approximately $7.5 million. Tornado Cash, a decentralized crypto mixer, was also recently compromised.
Overall picture
According to the Chainalysis reportCrypto hackers stole an estimated $3.8 billion in 2022, mostly from attackers associated with DeFi protocols and North Korea. Another analysis from TRM Labs found that while the number of hacking incidents remained stable in the first quarter of 2023, the average size of hacks fell to $10.5 million from about $30 million in the first quarter of the previous year. Did.
Conclusion
Atomic wallet breaches serve as a stark reminder of the inherent risks associated with digital assets. The frequency of such incidents continues to increase, highlighting the urgent need for increased security measures in the cryptocurrency space. The decline in the average size of hacks may offer a glimmer of hope, but TRM Labs’ warning that this trend may be temporary should not be taken lightly. Individuals and organizations must remain vigilant, prioritize security, and take proactive steps to protect their digital assets.
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