Digital asset tracking firm, Elliptic, recently discovered that losses suffered by users of Atomic Wallet have escalated to over $100 million. As it turns out, more than 5,500 wallets associated with the crypto storage platform have been compromised. Atomic Wallet acknowledged the reports of affected wallets through a June 3rd tweet, confirming that less than 1% of its users were impacted. With around five million clients, this equates to approximately 5,000 users. Yet, in the world of cryptocurrency, even such a tiny fraction of users can lead to substantial financial damages.
Elliptic, which is renowned for its advanced tracking and security analysis in the crypto domain, points to the Lazarus Group as the entity behind the breach. This group, allegedly linked to North Korea, has a notorious reputation in the crypto community for stealing over $2 billion in digital assets via multiple attacks. If this connection holds, it would become the first major crypto heist attributed to the group since the $100 million Horizon Bridge exploit in June 2022.
Following the breach, cybersecurity and crypto expert Dr. Sarah Brown weighed in: “This recent breach is a stark reminder of the ongoing risks in the cryptocurrency market. It also illustrates the essential need for advanced security protocols and constant vigilance on the part of all stakeholders.” Dr. Brown also emphasized the importance of keeping individual users informed about the risks associated with storage platforms and exchanges.
However, Atomic Wallet users who have been affected are voicing their anger at the platform’s apparent inaction and lack of communication following the breach. Clients are left waiting and hoping for a resolution while expressing their frustrations on social media.
Interestingly, following the measures taken last year to freeze stolen funds after the Horizon heist, the tactics of perpetrator groups, such as North Korea, have shifted. They are now using the Russian-based exchange Garantex to launder their ill-gotten gains. Garantex was sanctioned by the US Department of the Treasury in April 2022 for facilitating the laundering of funds derived from ransomware and darknet markets. Despite the sanctions, the exchange remains operational.
With Elliptic’s extensive research and unique intelligence on crypto wallets used by Garantex, customers can avoid transacting with this sanctioned entity. The cybersecurity firm’s response to these incidents highlights the importance of digital forensics capabilities in the crypto space, helping to maintain trust in an industry that is still securing its place in the mainstream market.
Source: Cryptonews
