Security News > 2023 > June > Crypto catastrophe strikes some Atomic Wallet users, over $35M thought stolen

The Atomic Wallet app's makers first reported June 3 that some folks were complaining some crypto had been taken from their wallets and deposited in strangers' accounts, with others saying their wallets had been emptied completely.

The developer, headquartered in Tallinn, Estonia, says Atomic Wallet is a noncustodial app, meaning that users own the 12-word backup phrase and private keys to their coins, rather than the app maker, and that security is within the users' control.

"Your funds are not located in the wallet itself, [they] are safely stored on the blockchain," Atomic Wallet says on its website.

Atomic Wallet also reminds users to keep their systems secure and up to date, adding that because information like the security keys and backup phrase are stored locally on the device, "If your device is compromised, the wallet can be compromised too."

In a Google Docs form, the company is asking users for such information as the operating system on their devices, the online app store they used to buy the Atomic Wallet app, the amount of lost funds coins and when the coins were withdrawn, where they stored the backup phrase, and when the last time was that they used their wallet before they saw that the coins were stolen.

It's unclear how the miscreants were able to steal the funds from users' wallets and Atomic Wallet said it is working with third-party security vendors to investigate.

News URL

https://go.theregister.com/feed/www.theregister.com/2023/06/05/atomic_wallet_stolen_crypto/