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Atomic Wallet freezes $2M in ‘suspicious deposits’ on exchanges

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Atomic Wallet freezes $2M in ‘suspicious deposits’ on exchanges

  cointelegraph.com  + 1 more 19 October 2023 14:20, UTC

Atomic Wallet freezes $2M in ‘suspicious deposits’ on exchanges

Hacked cryptocurrency wallet Atomic Wallet has frozen $2 million in “suspicious deposits” in a joint effort with major crypto exchanges.

Announcing the news to Cointelegraph on Oct. 19, Atomic Wallet said that blockchain intelligence firms Chainalysis and Crystal have assisted the wallet firm in identifying and containing the threat.

Citing reports received from Chainalysis and Crystal, Atomic Wallet reported that the “threat actor” used sophisticated methods to bridge the funds to the Bitcoin blockchain, including bridges and mixers. “Most funds have ultimately ended up on the Tron blockchain and Bitcoin network,” the report reads.

The report specifically mentioned that the funds were bridged through the Avalanche bridge and then bridged to the Tron blockchain.

“Atomic Wallet extends heartfelt gratitude to the centralized cryptocurrency exchanges collaborating promptly to freeze assets linked to reported transactions. Their swift response and cooperation were pivotal in mitigating the impact of the incident that happened to some users,” the firm said in the announcement.

Atomic Wallet didn’t immediately respond to Cointelegraph’s request to share further details about the issue.

The news comes months after Atomic Wallet suffered a major hack in June 2023, with the platform reportedly losing millions in stolen crypto assets. Atomic Wallet didn’t clarify what conditions exactly led to the exploit.

In August, a group of affected Atomic Wallet users reportedly launched a class action against the firm, which suffered a major breach and $100 million in losses.

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