Crypto Scam: Digital asset tracking firm, Elliptic, has recently disclosed that users of the popular crypto storage platform, Atomic Wallet, have experienced significant losses surpassing $100 million. The breach has impacted more than 5,500 wallets associated with the platform, raising concerns about the security measures employed by Atomic Wallet.
Atomic Wallet acknowledged the compromised wallets through a tweet on June 3, 2023. However, the company has yet to provide a detailed explanation regarding the cause of the losses. They did mention that fewer than 1% of their users were affected, which translates to approximately 5,000 users given their claimed user base of five million clients. Despite this relatively small percentage, in the volatile world of cryptocurrencies, even a fraction of users experiencing such losses can result in substantial financial repercussions.
Elliptic, renowned for its advanced tracking and security analysis in the crypto space, has attributed the breach to the Lazarus Group. This group, allegedly connected to North Korea, has gained notoriety within the crypto community for their involvement in multiple attacks that resulted in over $2 billion in stolen digital assets. If the attribution is accurate, this incident will mark the first major crypto theft associated with the Lazarus Group since the $100 million Horizon Bridge exploit in June 2022.
Following the breach, Elliptic has been diligently working to recover the stolen assets. Through collaboration with investigators and exchanges worldwide, they have successfully traced and frozen more than $1 million in stolen funds. However, the recovery process is ongoing, and the full extent of the losses remains to be determined.
Dr. Sarah Brown, a prominent cybersecurity and crypto expert, emphasized the need for enhanced security protocols and constant vigilance within the cryptocurrency market. She highlighted that while the industry offers vast possibilities, security breaches can lead to significant financial losses. Dr. Brown also commended the efforts of digital forensics companies like Elliptic, who play a crucial role in tracking and freezing stolen assets, showcasing the growing proficiency in handling such challenges.
Meanwhile, affected users have expressed their frustration on social media, both regarding the theft and Atomic Wallet’s perceived lack of action and communication following the breach. Atomic Wallet’s response to the situation remains awaited, as users anxiously hope for updates and the recovery of their funds.
In an intriguing twist, the measures taken to freeze the stolen funds after the Horizon heist in 2022 seem to have prompted a change in tactics by the perpetrators. North Korea has now turned to the Russian-based exchange, Garantex, to launder the illicitly obtained assets. It is worth noting that Garantex was previously sanctioned by the US Department of the Treasury in April 2022 for facilitating the laundering of funds derived from ransomware and darknet markets. Despite the sanctions, the exchange continues to operate.
Thanks to Elliptic’s exhaustive research and unique intelligence on crypto wallets used by Garantex, customers can avoid engaging with this sanctioned entity, ensuring the security of their transactions. The incident underscores the crucial role played by digital forensics capabilities in the crypto space, helping to preserve trust within an industry that is still establishing its presence in the mainstream market.