The crypto industry’s latest causality occurred over the weekend as nearly $35 million worth of various tokens were stolen from Atomic Wallet, a centralized storage and wallet service.
These tokens included bitcoin (BTC), ether (ETH), tether (USDT), dogecoin (DOGE), litecoin (LTC), BNB coin (BNB) and polygon (MATIC). Tron-based USDT seemed to be the largest stolen stash, on-chain analytics cited by blockchain sleuth ZachXBT showed.
Security audit company Least Authority warned in a blog post in 2022 that funds in Atomic Wallet may have been at risk.
In a tweet on Monday, Atomic Wallet said the impacted users represented “less than 1% of our monthly active users,” with the last drained transaction occurring on Saturday.
The firm previously said it was investigating and analyzing the attack. It had not released specifics of the attacks as of Monday morning.
Victims have been asked to submit information on a Google Docs form that Atomic Wallet is using to conduct its investigations.
Several users report that their crypto was stolen after a recent software update, while others say they were impacted despite not updating to the latest version, messages from Atomic Wallet’s official Telegram channel viewed by CoinDesk show.
UPDATE (June 5, 2023, 20:50 UTC): Adds context about Least Authority warning.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.