$35M Atomic Wallet hack losses reported by on-chain sleuth.

Since June 2, Atomic Wallet users have lost at least $35 million in crypto assets due to theft, with the five largest losses amounting to $17 million, according to an analysis by on-chain investigator ZachXBT. Atomic Wallet has announced on Twitter that the cause of the attack is being investigated. Reports have emerged of lost tokens, erased transaction histories, and complete crypto portfolios being stolen. ZachXBT conducted an independent investigation, revealing that the largest victim lost $7.95 million in Tether (USDT) and stating that the total could exceed $50 million. Atomic Wallet claims to have more than 5 million users worldwide, with a long-time client who is now a victim of the security breach losing nearly $1 million in crypto assets, including Bitcoin (BTC), Dogecoin (DOGE), Litecoin (LTC), Ether (ETH), USDT, USD Coin (USDC), BNB (BNB), and Polygon (MATIC).

Atomic Wallet is a noncustodial-decentralized wallet, meaning users are responsible for assets stored in the application. As usual, its Terms of Service do not accept any liability for on-chain damages suffered by users. The investigation is still ongoing, and Atomic Wallet has provided little information to its users so far. The support team is collecting victim addresses and has reached out to major exchanges and blockchain analytics companies to trace and block the stolen funds. Those contacting Atomic have been asked to answer over 20 questions about internet providers, use of virtual private networks (VPNs), and storage of seed phrases.

Some have pointed out in Telegram’s community channels that the exploit could have originated from an outdated dependency package. Dependency packages describe the relationship between activities to be performed within a program, including the order in which they should be performed, and the libraries needed to perform these activities.

The attack is one of many crypto hacks, with a Chainalysis report estimating that crypto hackers stole $3.8 billion last year, mostly through North Korean-linked attacks exploiting decentralized finance protocols. Cointelegraph contacted Atomic Wallet, but did not receive an immediate response.

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