In a recent staggering exploit, noncustodial decentralized wallet Atomic Wallet has been hit with a cyberattack that left many users reporting losses of their entire cryptocurrency portfolios. The breach has resulted in shockwaves throughout the crypto community, as the fundamental premise of Atomic Wallet relies on users assuming full responsibility for storing their assets securely.
The losses from this heist have now surpassed the $100 million mark, as analyzed by Elliptic, a blockchain analysis company. This frightening sum highlights the severity of the attack, which affected an estimated 5,500 crypto wallets. Despite the magnitude of the incident, Atomic Wallet has not yet provided any explanation regarding the root cause behind these considerable losses. This has led to increasing concerns from frustrated users who are anxiously awaiting clarification and reassurance from the company.
Blockchain analysis company Elliptic has connected the theft to the notorious Lazarus Group, which is believed to be responsible for stealing over $2 billion in crypto assets through various thefts. According to Elliptic, this disclosure marks the first time a significant crypto heist has been openly attributed to the Lazarus Group since their successful $100 million exploit of Horizon Bridge in June 2022.
Following the heist, Elliptic revealed that it had been working alongside international investigators and exchanges, as well as mobilizing its resources to recover the stolen assets. Their efforts have allegedly led to the freezing of over $1 million worth of the stolen funds. However, the blockchain analysis company pointed out that “in response to the freezing of these funds, the thief has begun to change their behavior. In particular, they have turned to the Russia-based Garantex exchange to launder the stolen assets.”
The recent attack is part of a series of notable breaches, including the recent exploit of Jimbos Protocol, which resulted in a loss of $7.5 million, and a malicious proposal that seized control of Tornado Cash’s governance in May. Based on a Chainalysis report, it is estimated that crypto hackers ran off with a staggering $3.8 billion in 2022, with a significant portion attributed to attacks linked to North Korea, particularly exploiting decentralized finance protocols.
As the crypto market grows in prominence and global interest continues to rise, the importance of addressing and overcoming cybersecurity risks to secure assets cannot be overstated. Incidents such as the Atomic Wallet heist not only reinforce the need for enhanced security measures but also create a more robust sense of urgency among the crypto community to be proactive in safeguarding their digital assets. It is essential for investors and users to remain vigilant and stay informed about security best practices to avoid being the next victim.
Source: Cointelegraph
