<\/p>\n
Atomic Wallet, a cryptocurrency wallet service with 5 million users, is currently grappling with a significant security breach. <\/p>\n
An unknown exploitation<\/a> has resulted in users losing over $35M of assets. However, the damage may very well exceed $50M<\/a>, considering ongoing reports of stolen assets. The largest reported loss is $7.95M in USDT tokens drained from a single wallet.<\/p>\n On-chain investigator ZachXBT identified<\/a> the exploit and was instrumental in recovering some lost funds; over $1M has been returned to one victim of the exploit. Details of the recovery process have not been disclosed as the exploit continues to pose a risk to Atomic Wallet’s users.<\/p>\n The Atomic Wallet tokens<\/a> dropped more than 25% following the news of the hack.<\/p>\n The project’s reply<\/a> to the incident has been met with criticism. <\/p>\n Users took to Twitter to contest the company’s claim that the last exploit transaction occurred over 40 hours ago. Several<\/a><\/span> users<\/a> have reported losing Bitcoin<\/a> and other assets after the timeframe provided by Atomic Wallet.<\/p>\n Taylor Monahan, the founder and CEO of MyCrypto, alleged<\/a> Atomic wallet of negligence. <\/p>\n Monahan alleges that the wallet service ignored a security report<\/a> from February 2022 that warned of critical vulnerabilities that could lead to substantial user losses.<\/p>\n In the face of this exploit, the question of user compensation remains uncertain. As per Atomic Wallet’s terms and conditions, the company is not obligated to compensate users for more than $50 in damages. This clause<\/a> This leaves many users with substantial losses and little hope of recovery from the company.<\/p>\n The DeFi sector has been hit by several major exploits in 2023, including a $200M exploit<\/a> on lending protocol Euler Finance in March, and a $3.4M loss<\/a> due to a faulty smart contract on SushiSwap. <\/p>\n<\/div>\nLimited Recourse<\/h4>\n