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Atomic Wallet says the hack affected 1% of active users, but investors say otherwise
A hack that has drained $35 million from Atomic Wallet users since June 2 affected less than 1% of monthly active users. according to to the company. In the aftermath of the attack, Atomic Wallet — along with individual blockchain researchers — stepped up efforts to track down and recover stolen funds.
In an attempt to cash in on the commotion, a few verified scam Twitter accounts posed as 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 in lost funds. However, the recovery process has yet to be revealed, which ZachXBT will reportedly “share in due course, but it’s better not to yet.”
A huge shoutout goes to @buffalu__ @brian_smith_0 for their help in successfully rescuing $1 million from the Atomic Wallet hacker for one of the victims.
— ZachXBT (@zachxbt) June 4, 2023
Contrary to Atomic Wallet’s announcement, countless users continue to report money loss at the time of writing. In addition, the community called out the company’s attempt to mitigate the damage, as one user mention:
“% doesn’t matter, hacker intends to focus only on the wallet of the large fund.”
The episode reflects on the importance of researching the right service provider when it comes to crypto asset custody. 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 research found that the largest amount of money a person lost in the Atomic Wallet hack was $7.95 million in Tether (USDT) on the Tron blockchain. According to the latest update, the top five losses account for $17 million.
Related: Gate.io threatens legal action against tabloid press
Over the weekend, on June 4, a hacker took control of the cell phone of pro-XRP (XRP) advocate, John Deaton. Deaton’s Twitter account was then used to shill LAW tokens.
John Deaton’s phone was hacked today after a relentless cyberattack over several days.
This is NOT a legitimate tweet. His account has been taken over. He immediately took steps to remedy the situation.
Ignore it and all communications from it until you…
— CryptoLaw (@CryptoLawUS) June 3, 2023
Shortly after the tweet, Deaton and accounts representing him warned users about the hack and advised against investing in the cryptocurrency.
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