In a collaborative effort with major cryptocurrency exchanges, hacked cryptocurrency wallet Atomic Wallet has frozen $2 million in “suspicious deposits” after receiving reports from users about unauthorized transactions from their wallets.
Blockchain Intelligence Firms’ Involvement
Atomic Wallet partnered with blockchain intelligence companies Chainalysis and Crystal to identify and mitigate the threat. Reports from these firms revealed that the “threat actor” employed sophisticated techniques, such as bridges and mixers, to route the funds onto the Bitcoin blockchain. Ultimately, most of the funds ended up on the Tron blockchain and Bitcoin network.
The report highlighted that the funds were initially moved through the Avalanche bridge before being routed to the Tron blockchain.
Gratitude to Centralized Exchanges
Atomic Wallet expressed its gratitude to centralized cryptocurrency exchanges for their swift response and cooperation in freezing assets associated with the reported transactions. Their prompt actions were instrumental in minimizing the impact of the incident on affected users.
This development follows a major hack that Atomic Wallet suffered in June 2023, resulting in the loss of millions in stolen cryptocurrency assets. Atomic Wallet did not specify the exact conditions that led to the exploit.
Legal Action by Affected Users
In August, a group of Atomic Wallet users affected by the breach initiated a class action lawsuit against the company, which had incurred substantial losses amounting to $100 million due to the security breach.
This collaborative effort to freeze “suspicious deposits” underscores the importance of collective action to safeguard the interests of cryptocurrency users in the face of security threats.