Atomic Wallet Freezes $2 Million in Suspicious Deposits
Atomic Wallet has detected suspicious deposits and frozen over $2 million in partnership with prominent exchanges. In an announcement on October 18, 2023, the wallet provider sought the assistance of blockchain intelligence firms Chainalysis and Crystal to identify and contain unlawfully obtained funds resulting from an undisclosed hack. The majority of these assets were traced back to the Tron and Bitcoin blockchains after passing through decentralized protocols to conceal their source. Atomic Wallet expressed gratitude to centralized cryptocurrency exchanges for their collaboration in freezing assets linked to reported transactions, minimizing the impact on users.
Atomic Wallet Still Recovering from Hack
This recent development follows a major hack that Atomic Wallet experienced in June 2023, resulting in the loss of approximately $100 million in stolen cryptocurrency assets. While specific details about the exploit were not clarified by Atomic Wallet, blockchain investigator MistTrack revealed that THORChain was used by the hackers. The hackers may be connected to North Korean hacking groups and used the Swift blockchain to transfer stolen Ether to multiple Bitcoin addresses. Atomic Wallet took proactive measures by alerting users through social media channels, suspending app downloads and updates, and engaging blockchain analysis companies for an investigation.
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Class Action Lawsuit Filed by Affected Users
In August 2023, a group of Atomic Wallet users affected by the breach initiated a class action lawsuit against the company. The group claimed that Atomic Wallet had not conducted a technical inquiry or provided information to its users. However, it is unclear if the frozen funds discovered recently are connected to the previous hack.
Hot Take: Atomic Wallet Strives to Protect User Funds
Despite facing significant security challenges, Atomic Wallet is committed to safeguarding user funds. By collaborating with blockchain intelligence firms and centralized exchanges, they are taking proactive measures to identify and freeze suspicious deposits. While the previous hack resulted in a substantial loss, Atomic Wallet responded swiftly to mitigate the impact and ensured that users’ crypto assets remained secure on the blockchain. The ongoing investigation and legal action taken by affected users demonstrate the importance of accountability and transparency in the cryptocurrency industry.
