Hacked cryptocurrency wallet Atomic Wallet has taken action to freeze $2 million in “suspicious deposits” with the assistance of major crypto exchanges. The wallet firm collaborated with blockchain intelligence firms Chainalysis and Crystal to identify and contain the potential threat.
According to the reports from Chainalysis and Crystal, the “threat actor” utilized advanced methods, including bridges and mixers, to transfer the funds to the Bitcoin blockchain. The majority of the funds eventually ended up on the Tron blockchain and the Bitcoin network.
Specifically, the report highlighted that the funds were bridged through the Avalanche bridge before being transferred to the Tron blockchain. In response to the incident, Atomic Wallet expressed its gratitude to the centralized cryptocurrency exchanges for swiftly cooperating to freeze assets tied to the reported transactions. The firm acknowledged that their prompt response and collaboration played a crucial role in mitigating the impact of the incident on affected users.
However, Atomic Wallet refrained from disclosing the names of the cryptocurrency exchanges that assisted in freezing the funds, citing the ongoing investigation’s integrity. The spokesperson for the firm stated that they are unable to share details at this stage and a timeline for providing more information is yet to be established.
This recent development comes after Atomic Wallet experienced a significant hack in June of this year, resulting in the reported loss of millions of dollars in stolen crypto assets. The platform has not provided detailed clarification on the specific conditions that led to the exploit.
In August, a group of affected Atomic Wallet users initiated a class action lawsuit against the firm, seeking justice for the major breach that caused approximately $100 million in losses.
It is worth noting that this incident underscores the growing concerns surrounding the security of cryptocurrency wallets. As the crypto industry continues to expand and attract more users, the need for robust security measures becomes increasingly critical. Stakeholders, including cryptocurrency exchanges and wallet providers, must work together to enhance security protocols and protect users’ digital assets.
Furthermore, incidents like these highlight the importance of collaboration between different players in the industry, such as wallet firms, blockchain intelligence companies, and cryptocurrency exchanges. By sharing information and working together, they can more effectively identify and address potential threats, ultimately safeguarding users’ funds and maintaining trust in the crypto ecosystem.
Moving forward, Atomic Wallet and other wallet providers are expected to implement more stringent security measures to prevent similar incidents from occurring in the future. As the crypto industry matures, security will remain a top priority, and continuous efforts to stay ahead of hackers and protect users’ assets will be paramount.