Urgent Alarm: Atomic Wallet Exploited and Users Lose Significant Crypto Holdings

Atomic Wallet, a noncustodial decentralized wallet, has suffered an exploit resulting in users experiencing substantial losses in their crypto portfolios.

The attack adds to the growing list of weekly crypto hacks, highlighting the ongoing vulnerability of the cryptocurrency ecosystem.

Despite a temporary decline in the average hack size in Q1 2023, experts caution that large-scale attacks could easily disrupt this trend and lead to increased losses.

Summary

Atomic Wallet, a noncustodial decentralized wallet, has fallen victim to an exploit, causing users to suffer significant losses in their cryptocurrency holdings. The exploit, reported on June 3, has prompted an investigation by Atomic's team, with users reporting wiped funds and complete loss of assets stored in the application. The attack joins the increasing frequency of crypto hacks, with recent incidents targeting platforms like Jimbos Protocol and Tornado Cash.

Last year, an estimated $3.8 billion was stolen by crypto hackers, predominantly through DeFi protocol exploits linked to North Korea. Although the average hack size decreased in Q1 2023 compared to the previous year, experts from TRM Labs warn that this decline may be temporary, cautioning that a few large-scale attacks could swiftly reverse the trend and result in escalated losses within the crypto landscape.