Atomic Wallet hacked, users lose entire portfolios.

Users on Twitter are reporting complete losses of their cryptocurrency portfolios from Atomic Wallet, which has apparently been exploited. Atomic Wallet is a noncustodial-decentralized wallet, meaning the users are responsible for the assets stored in the application. Atomic’s team has received reports of wallets being compromised and is investigating the situation. However, it is unclear how the attack was carried out. Atomic claims to have over 5 million users. Some users have reported losses, claiming that their funds were wiped out from their digital wallet app. ZachBTX, an on-chain sleuth known for tracing stolen funds and assisting hacked projects, is taking part in the investigation.

One Twitter user reported, “God damn, All of my hard working money has been vanished from atomic wallet only!!!! This is your responsibility to secure the funds, What will happen to our funds? please do not copy paste anything here! just give all clear answer, Many users are faced with this today!!”

— Tom (@Christomos03) June 3, 2023

Twitter users have also reported that funds on the Atomic Wallet app have been stolen in the past. The attack joins a growing list of crypto hacks taking place every week. Crypto hackers stole an estimated $3.8 billion last year, mainly from North Korea-linked attackers and DeFi protocols, according to a Chainalysis report. Another analysis from TRM Labs reveals that while the number of incidents remained the same in the first quarter of 2023, the average hack size dropped to $10.5 million from nearly $30 million in the first quarter of 2022. TRM Labs noted that this slowdown is most likely a temporary reprieve rather than a long-term trend and that just a few large-scale attacks could tip the scales again.

The article also discusses the recent hacks of Decentralized Finance (DeFi) app Jimbos Protocol and decentralized crypto mixer Tornado Cash, as well as the question of whether or not crypto projects should negotiate with hackers.