North Korean hackers have executed a massive heist, resulting in the theft from thousands of Atomic Wallet users. The attack has impacted approximately 5,500 crypto wallets, leaving users devastated as they face complete losses of their cryptocurrency portfolios.
Magnitude of the Attack
The breach at Atomic Wallet has escalated to a staggering amount of over $100 million in losses. Elliptic, a leading blockchain analysis company, confirmed this. This alarming figure emphasizes the severity of the attack, which has compromised thousands of crypto wallets.
Despite the impact of the incident, Atomic Wallet has yet to provide any explanation regarding the root cause of these substantial losses. This lack of transparency has left frustrated users anxious for clarification and reassurance from the company. Additionally, Atomic Wallet’s absence on social media since June 7 has only added to users’ concerns.
Atomic Wallet User Frustration and Twitter Outcry
Numerous Atomic Wallet users have taken to Twitter to express their frustration with the company’s handling of the situation. One user, Ezra Carlson, directly questioned Atomic Wallet. He demanded to know why they failed to issue warnings about the hacking threat before he made a transfer that resulted in his wallet being compromised.
Another user, “Real Deal Crypto,” criticized Atomic Wallet’s lack of updates. Additionally, he highlighted the absence of any meaningful communication for five days.
On June 3, Atomic Wallet acknowledged the reports of compromised wallets through a tweet but downplayed the impact, claiming that less than 1% of its user base had been affected. However, given the massive sum of the losses, it is evident that the breach had a significant impact on a considerable number of users.
Lazarus Group’s Involvement
Elliptic, the blockchain analysis company, has attributed the heist to the notorious Lazarus Group. This group has a history of stealing billions of dollars in crypto assets through various thefts. Remarkably, this marks the first time a significant crypto heist has been openly linked to the Lazarus Group since their exploit of Horizon Bridge in June 2022, where they stole $100 million.
In response to the heist, Elliptic has initiated collaboration with international investigators and exchanges. They are mobilizing resources to recover the stolen assets. They have successfully frozen over $1 million worth of the stolen funds.
However, the thief has adapted to this situation and has started using the Russia-based Garantex exchange to launder the stolen assets. This has resulted in raising concerns about the effectiveness of recovery efforts.
The recent attack on Atomic Wallet joins a series of significant breaches in the crypto world. The exploit of Jimbos Protocol resulted in a loss of $7.5 million. Also, a malicious proposal took control of Tornado Cash’s governance in May. According to a report by Chainalysis, crypto hackers made away with a staggering $3.8 billion in 2022.
Notably, a substantial portion of these attacks has been linked to North Korea, with decentralized finance protocols being a prime target.