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Atomic Wallet, a renowned decentralized wallet, has reported an unprecedented security breach, leaving investors shocked as their digital assets vanished, painting a picture of digital larceny on an unimaginable scale.
According to blockchain analytics firm Elliptic, the losses from this colossal digital heist are estimated at a staggering $100 million. Their estimate suggests that approximately 5,500 digital wallets were affected, sending tremors of uncertainty throughout the virtual currency world.
Atomic Wallet's silence since the breach is raising eyebrows. The company has not provided any information about the root cause of the incident, escalating concerns among its clientele who are demanding answers and assurances. Atomic Wallet's last activity on Twitter was on June 7, which does little to quell the growing storm.
Customers have taken to social media platforms to air their grievances about the perceived inaction of the company. On June 3, Atomic Wallet acknowledged the breach in a tweet but seemed to downplay its severity, stating that "less than 1%" of users were affected. However, the escalating loss figure tells a different story, indicating a much larger violation.
Elliptic has pointed to the infamous Lazarus Group as the possible culprit. The group, already linked to over $2 billion in crypto theft, is now openly attributed to the Atomic Wallet raid, marking their first significant digital heist since the Horizon Bridge incident last year, where $100 million worth of crypto assets were stolen.
In response to this grand theft, Elliptic is collaborating with global investigators and exchanges to recover the stolen digital assets. Their efforts have yielded some success, with over $1 million of the stolen funds being frozen. However, the thief has altered tactics and is now laundering the assets through the Russia-based Garantex exchange.
The Atomic Wallet incident adds to a growing list of major breaches, including Jimbos Protocol's recent $7.5 million loss and a malevolent proposal that seized Tornado Cash's governance. According to a Chainalysis report, 2022 witnessed nearly $4 billion worth of digital currencies being stolen, with a significant portion attributed to North Korea-linked attacks and various exploits on decentralized finance protocols.
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