Atomic Wallet says hack affected 1% of active users, but investors claim otherwise
June 5, 2023

Atomic Wallet says hack affected 1% of active users, but investors claim otherwise



A hack that drained $35 million from Atomic Wallet users since June 2 impacted less than 1% of its monthly active users, according to the company. In the aftermath of the attack, Atomic Wallet — along with individual blockchain investigators — have amped up efforts to track and revert stolen funds.

Trying to cash in on the commotion, a few verified scam Twitter accounts impersonated Atomic Wallet while sharing phishing links claiming to help users recover lost funds.

Pseudonymous on-chain researcher ZachXBT further claimed to have helped a victim recover $1 million of lost funds. However, the recovery process is yet to be disclosed, which ZachXBT allegedly “Will share in time but best not to yet.”

Despite Atomic Wallet’s announcement, numerous users were continuing to report loss of funds at the time of writing. Additionally, the community called out the company’s attempt to water down the damage, as one user stated:

“% doesn’t matter, hacker intend to focus on big fund wallet only.”

The episode reflects on the importance of researching the right service provider when it comes to the safekeeping of crypto assets. Moreover, it questions the “not your keys, not your coins” narrative preached by numerous crypto wallet providers such as Atomic Wallet, as shown below.

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 the last update, the five biggest losses account for $17 million.

Related: threatens legal action against rumor-mongers

Over the weekend, on June 4, a hacker took control of the mobile phone owned by pro-XRP (XRP) lawyer, John Deaton. Deaton’s Twitter account was then used to shill LAW tokens.

Soon after the tweet, Deaton and accounts representing him warned users about the hack and were advised against investing in the cryptocurrency.

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