‘Less Than 1%’ of Users Hit by $35M Hack, Says Atomic Wallet

The Atomic Wallet team continues to investigate the recent $35 million exploit of its software wallet over the weekend.

The crypto wallet provider announced today that "less than 1% of our monthly active users have been affected/reported," and that the last exploit was reported 40 hours ago.

It noted that the "security investigation is ongoing," and the team is working with crypto exchange and blockchain analytics firms to "trace and block the stolen funds."

On Saturday, the team issued a similar statement, saying it was spending all its efforts to "investigate and analyze the situation."

Joko, the anonymous founder of crypto hardware wallet BitBox and crypto podcaster, told Decrypt, "their (Atomic Wallet team's) communication has been absolutely terrible."

They added that "the fact they still haven't warned users and told them to pull out their money from their obviously compromised wallet is not just incompetent, but malicious."

The Atomic Wallet is not open-source, meaning not all parts of the source code is available to the public for review.

According to the team, open-source wallets are more vulnerable to attacks and copycats than centralized wallets.

Atomic Wallet hack still unknown

The root cause of the hack remains unknown. This is a reason for concern, as over 5 million users of the Atomic Wallet hack might still be exposed to the vulnerability.

The first reports of the hack came out over the weekend as users reported losing funds once they went online on the mobile applications. Other users even reported losing money while offline, according to a Reddit thread on the issue.

Reports of successful recovery are also coming out, with blockchain security experts helping victims work against the hackers.

Reportedly, Jito Labs members rescued $1 million from the hackers for a victim.

SlowMist, another blockchain security firm, has identified hacker addresses by analyzing the exploit transactions and compiling a list of victims to help in the rescue process.