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Atomic Wallet hack drains $35M in user assets

The largest victim faced losses of $7.95 million USDT on the Tron network.

Atomic Wallet, a decentralised crypto wallet with more than five million users, has been exploited. The wallet announced yesterday that a number of wallets have been compromised, but the root cause is still unknown.

A number of users have reported ADA and XRP being drained from their accounts, with some entire portfolios being drained. 

Reported losses have now reached $35 million.

Independent investigator and “on-chain sleuth” ZachXBT found that the largest victim of the attack was found on Tron with a staggering $7.95 million USDT stolen. 

Atomic wallet is non-custodial, meaning users are entirely responsible for the private keys and funds. Clause 8 of their Terms of Service states that the wallet will “under no circumstances” be liable for damages arising out of services exceeding $50.

“At the moment less than 1% of our monthly active users have been affected/reported,” the wallet tweeted. “Last drained transaction was confirmed over 40h ago. Security investigation is ongoing. We report victim addresses to major exchanges & blockchain analytics to trace and block the stolen funds.” 

One hack victim tweeted: “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 happened to our funds?”

ZachXB expects the number of losses to increase to $50 million. 

Phishing scammers are already exploiting victims of the hack, spamming fake Atomic Wallet refund tweets on Twitter.

The hack is the latest in a string of security breaches over the past few weeks. On May 20, a malicious attacker gained full control over Tornado Cash’s governance, allowing them to withdraw tokens in the governance contract. 

On May 28, Arbitrum-based Jimbos Protocol was also hacked, resulting in $7.5 million losses in Ether. 

While hacks are generally on the decline, they still happen. Read here to find out our top eight tips to improve your wallet security. 

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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