Atomic Wallet Faces Criticism for Mysterious Security Upgrades Following $100M Hack

Atomic Wallet Faces Backlash for Vague Response to $100M Hack

Atomic Wallet, a decentralized non-custodial wallet provider, is facing significant criticism online following its recent statement that lacked transparency regarding a major theft of user funds earlier this month.

In the statement, Atomic Wallet claimed that less than 0.1% of its app users had been affected by the hack, which occurred on June 3rd. However, the company did not disclose the total amount of funds stolen, the identity of the perpetrators, or provide any specific details regarding the attack.

Atomic Wallet’s statement suggested several potential causes for the breach, including virus targeting on users’ devices, infrastructure breaches, malware code injection, or a man-in-the-middle attack. However, the company stressed that none of these potential causes had been confirmed as the root of the massive breach, as such attacks are difficult to detect.

Independent blockchain analytics and compliance firm, Elliptic, estimated that over $100 million worth of cryptocurrency was stolen during the hack. Additionally, Elliptic conducted an analysis suggesting the involvement of North Korea’s state-sponsored hacking group, Lazarus Group, in orchestrating the theft.

Despite acknowledging collaboration with blockchain analysis firms Chainalysis and Crystal to trace the missing crypto, Atomic Wallet’s statement did not provide specific details about a reimbursement plan for affected customers. Instead, the company stated that it was prioritizing assisting affected users and working with authorities to develop a legal framework for distributing frozen deposits among those impacted.

Furthermore, Atomic Wallet appeared to distance itself from responsibility for the breach, emphasizing that it does not store or have access to users’ private keys. The company asserted that it solely provides software for managing cryptocurrencies on users’ local devices and does not collect personal information or store user accounts.

Atomic Wallet claimed no new incidents had been reported since the initial hack and highlighted that its security infrastructure had been updated. However, CEO of ZenGo, a crypto wallet company, Ouriel Ohayon, urged Atomic Wallet on Twitter to provide more information regarding the specific security updates.

Twitter users expressed their dissatisfaction with Atomic Wallet’s lack of transparency, particularly regarding a compensation plan for affected users. Some criticized the company for withholding crucial details about the hack, while others accused Atomic Wallet of intentionally concealing information.

The online backlash against Atomic Wallet highlights the importance of transparency and accountability in the cryptocurrency industry, particularly in the aftermath of security breaches. Users and industry observers are eagerly awaiting further updates and clarification from Atomic Wallet regarding the incident.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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