Atomic Wallet Hack Drains $35M: Investors Cry Foul

• On June 2, Atomic Wallet users lost $35 million due to a hack.
• An on-chain researcher allegedly helped a victim recover $1 million of stolen funds.
• Numerous users are still reporting losses of funds at the time of writing.

Atomic Wallet Hack Affects 1% Of Active Users

Atomic Wallet recently announced that a hack on June 2 resulted in the loss of $35 million from its users, however according to the company this impacts less than 1% of its monthly active users. The company has been working with individual blockchain investigators in an effort to track and revert stolen funds.

Verified Scam Accounts Impersonate Atomic Wallet

In response to the attack, scam Twitter accounts have been impersonating Atomic Wallet while sharing false links claiming to help users recover lost funds. On-chain researcher ZachXBT was able to help one victim recover $1 million worth of stolen funds but is yet to disclose how this process worked.

Users Call Out Company’s Attempt To Water Down Damage

Despite Atomic Wallet’s announcement, numerous users are continuing to report losses and some have called out the company for attempting to downplay the attack. This emphasizes the importance of researching service providers when it comes to safekeeping crypto assets and questions if “not your keys, not your coins” is really true as preached by wallet providers such as Atomic Wallet.

Largest Loss Amounted To $7.95 Million In USDT

ZachXBT’s investigation found that the largest amount lost by an individual in the Atomic Wallet hack was $7.95 million in Tether USDT on the Tron blockchain. As per their last update, five biggest losses account for an estimated total loss of $17 million overall.

John Deaton’s Phone Hacked Over Weekend

Over the weekend on June 4, pro-XRP lawyer John Deaton was hacked resulting in control over his Twitter account being taken over which was used to shill LAW tokens. He has since taken steps to remedy this situation immediately but it serves as another example of why caution should be taken when interacting with online services and using passwords and other security measures correctly when storing crypto assets offline or online wallets.