Atomic Wallet investigates user reports of compromised accounts and tries to block stolen crypto from being sold; a researcher says the hack could exceed $35M+
The developers of Atomic Wallet are investigating reports of large-scale theft of cryptocurrency from users' wallets, with over $35 million in crypto reportedly stolen.
BleepingComputerLawrence Abrams
Context & Ripple Effects
The related coverage shows a recurring custody-security problem: Crypto.com responded to suspected unauthorized withdrawals by halting withdrawals, resetting sign-ins and 2FA, then reimbursing affected users in its reported breach response. Atomic Wallet’s attempt to stop stolen assets from being sold places the incident at the recovery and containment stage rather than a completed remediation.
Atomic Wallet users reporting compromised accounts face potential loss and uncertainty while the company investigates the scope of the incident.
Efforts to block stolen crypto from being sold could constrain the immediate liquidation of identified funds, but do not by themselves establish recovery for affected users.
Second-order effects
Wallet providers and trading venues may face pressure to identify and restrict suspect flows faster, since containment depends on coordination beyond the wallet developer.
Users may reassess how much value to keep in a single wallet product and demand clearer safeguards, recovery processes and disclosure from wallet operators.
Third-order effects
If repeated wallet compromises persist, the wallet becomes less a simple interface and more a security-critical permission layer, with product differentiation shifting toward key protection and incident handling.
The pattern could increase expectations for interoperable asset-tracing and response practices, though the corpus does not establish whether such coordination will become standardized.
The trend: This is one data point in the broader shift toward treating crypto wallets as high-stakes security and recovery infrastructure, not merely software for holding assets.
We have received reports of wallets being compromised. We are doing all we can to investigate and analyse the situation. As we have more information, we will share it accordingly. For any questions and concerns, contact support@atomicwallet.io
Update: A new largest victim was found on Tron with 7.95M USDT stolen, The five biggest losses account for $17M. My graph has now surpassed $35M in total stolen. [image]
Update: The investigation is still ongoing in a joint effort with the leading security companies. The team is working on possible attack vectors. Nothing yet confirmed. Support team is collecting victim addresses. Reached out to major exchanges and blockchain analytics companies.…
At the moment less than 1% of our monthly active users have been affected/reported. 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.
Some things to note about this hack. Largest single victim I have observed is for 2.8M USDT. Multiple other losses for 6 figures across different chains. Thanks to all of the victims who have messaged me their transaction hash. The root cause is still tbd. https://twitter.com/...…
Update: The new largest individual loss from this hack was just found at $3.5M (1897 ETH). The five biggest losses have accounted for $9.7M in total. [image]
#PeckShieldAlert @zachxbt has uncovered a security breach in @AtomicWallet. In the latest update, it was revealed that over $35M worth of cryptos from various chains, including #BTC, #TORN, #Ethereum, and others were stolen. https://twitter.com/... Exploiter 0xd290...30f, who... …
Never entrust $8M to a hotwallet where you don't have legal leverage. Even the majority of banks that face bankruptcy don't cover such sums with their deposit insurances. You don't want to pay that much learning money before figuring it out. Cold wallet -> Exchange (Buy/Sell)... …