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The security breach of Atomic Wallet, a noncustodial-decentralized wallet service, has resulted in an estimated loss of over $35 million in crypto assets, according to a recent analysis by on-chain investigator ZachXBT.
According to ZachXBT, The five largest losses alone make up $17 million of the total. The analysis has brought to light instances of token losses, wiped transaction histories, and even whole cryptocurrency portfolios disappearing.
As a noncustodial-decentralized wallet, Atomic Wallet places the responsibility of asset storage on the users. Its Terms of Service rule out any liability for on-chain damages suffered by users that exceed $50.
While the investigation continues with the involvement of leading security firms, Atomic Wallet's support team is gathering data from victims and reaching out to major exchanges and blockchain analytics companies to trace and block the stolen funds. At this point, there's no confirmed information about the possible attack vectors.
Those who've contacted Atomic Wallet for help have been asked to provide detailed information covering more than 20 aspects, including their internet service providers, use of VPNs, and seed phrase storage methods.
In the community channels of Telegram, some users have speculated that an outdated dependency package might have been the origin of the exploit. Dependency packages govern the sequence and requirements for executing activities within a program.
This incident adds to the increasing number of crypto hacks witnessed recently. Last year, crypto hackers reportedly stole $3.8 billion, with a majority of attacks associated with North Korean-linked groups exploiting decentralized finance protocols.
Atomic Wallet is continuing to investigate the security breach.