Atomic Wallet, a noncustodial-decentralized wallet with over 5 million users, has been hacked and lost at least $35 million in crypto assets since June 2. The largest victim lost $7.95 million in Tether (USDT). The total amount stolen could surpass $30 million, according to on-chain investigator ZachXBT.
The cause of the attack is still unknown. Users have reported missing tokens, erased transaction histories, and stolen crypto portfolios. Atomic Wallet has not provided much information to the victims, except asking them to answer over 20 questions about their internet and wallet usage.
One of the victims is Emre, a cybersecurity expert from Turkey who lost nearly $1 million in various crypto assets. He said he felt terrible and that Atomic Wallet did not have anything concrete yet. He was planning to use the funds to start a cybersecurity firm in Turkey.
Atomic Wallet is a decentralized wallet that gives users full control over their assets. However, this also means that users are responsible for any on-chain damages and that Atomic Wallet does not accept any liability for the losses. Its Terms of Service state that it will not be liable for more than $50.
To make matters worse, scammers have started to take advantage of the situation and impersonate Atomic Wallet staff. They are contacting victims and offering refunds in exchange for personal information or fees. Users have to be careful and not fall for these phishing attempts. The result of the hack is still unknown and Atomic Wallet has not announced any compensation plan for the affected users.
This is one of the many crypto hacks that have occurred recently. In May, Jimbos Protocol and Tornado Cash were also exploited by hackers. A report by Chainalysis estimates that crypto hackers stole $3.8 billion in 2020, mostly from decentralized finance protocols.
