Investigation confirms Atomic Wallet was exploited

On Jun 4, 2023

The team behind Atomic crypto wallet is investigating a potential hack attack, as many Atomic wallet users reported fund loss.

Atomic wallet is a non-custodial or say self custody Crypto wallet, which allows people to hold & trade crypto assets across several crypto networks.

On 3 June 2023, Many Atomic Wallet users reported that they lost all of their funds on Atomic Wallet and claimed that Atomic wallet went through a potential hack attack.

The Atomic Wallet team officially responded on this matter and confirmed that it is investigating the potential hack attack.

We have received reports of wallets being compromised. We are doing all we can to investigate and analyse the situation. As we have more information, we will share it accordingly.

For any questions and concerns, contact support@atomicwallet.io
— Atomic – Crypto Wallet (@AtomicWallet) June 3, 2023

Popular crypto detective ZachXBT is also investigating this potential hack attack.

Latest investigations revealed that hacker (s) drained nearly $14 million worth of crypto assets. And only the top 5 big victims lost nearly $9.7 million in total.

Update: The new largest individual loss from this hack was just found at $3.5M (1897 ETH).

The five biggest losses have accounted for $9.7M in total. pic.twitter.com/deVhMxvwLl
— ZachXBT (@zachxbt) June 4, 2023

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A crypto Twitter user reported that his BTC disappeared from the Atomic wallet in the similar way, around 6 months ago, and at the time Atomic team suggested keeping private key & phrase seeds safe.

This happened to my BTC 6 months ago with Atomic. They simply replied back to protect your pw, seed phrase, blah blah… I told them NOT even possible! All I do is use U to exchange and then move crypto out. My response to them, I will use U no MORE then! Now I was right!
— Jim Wear (@JimWear) June 3, 2023

Earlier this, a former MetaMask developer reported that she lost nearly 5K ETH & huge numbers of NFTs from her wallet.

For the past 48hrs I've been unwinding a massive wallet draining operation 😳😭

I don't know how big it is but since Dec 2022 it's drained 5000+ ETH and ??? in tokens / NFTs / coins across 11+ chains.

Its rekt my friends & OGs who are reasonably secure.

No one knows how. pic.twitter.com/MafntG7RkP
— Tay 💖 (@tayvano_) April 18, 2023

Later the MetaMask wallet team reported that the hack never occurred on MetaMask, instead, the MetaMask wallet user was targeted somewhere.

Such types of hack incidents are showing that it is not even safe to hold crypto assets on the self custody crypto wallets and also it is not better to go with centralised & highly regulated crypto firms.

In the last 12 months, several crypto companies collapsed badly & also huge numbers of crypto Investors lost their funds. Over the last 3-4 months, crypto investors shifted toward self custody crypto wallets.

The current situation created a conflict in the mind of the crypto Investors over the safety of funds & choice of the perfect crypto wallet.