According to blockchain analysis firm Elliptic, stolen assets from the latest Atomic Wallet hack have been moved through a mixing service. While mixers and blenders aim to provide privacy for legitimate crypto users, they are also commonly abused by hackers and scammers to hide stolen funds.
Elliptic Reveals Laundering Connected To Atomic Wallet Hack
Last week, hackers breached the non-custodial decentralized wallet, Atomic Wallet, and made off with over $35 million in various crypto assets from unsuspecting users.
The hackers didn’t stop there, though. In an attempt to hide their tracks, they moved the stolen funds through a crypto-mixing service to obscure the source of the money.
In a recently made by Elliptic, the company’s investigations team revealed that it had tracked funds stolen in the attack to Sinbad.io, a mixer that has been linked to the nefarious Lazarus Group of North Korea.
According to the investigation, the stolen assets were swapped to Bitcoin and moved through the mixer. Unfortunately, the exact amount that was delivered to the mixer is still unknown, and Elliptic did not specify in the tweet.
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The Aftermath Of The Hack
Last week, Atomic Wallet became the latest crypto company to fall victim to a hack and have its security breached. During the weekend, users began flooding Twitter with complaints that digital assets such as Tether’s USDT, Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE) had mysteriously vanished from their wallets. Some customers have even reported that they have completely lost all of their cryptocurrency holdings.
Atomic Wallet also confirmed reports of the compromised wallets on its platform. While the details of how the hack happened weren’t released, it is highly likely to be a direct phishing attack.
The company that less than 1% of its monthly users were impacted by the hack. However, some have claimed otherwise as the non-custodial decentralized wallet boasts of 5 million users.
The investigations into the Atomic Wallet hack are ongoing as authorities work to track down the stolen funds. Unfortunately, cryptocurrencies stolen in hacks are difficult to trace once they’ve been moved around.
There is always a possibility that some or even all of the funds may never be retrieved due to the anonymous nature of cryptocurrency.
The hack serves as an important reminder that security remains the most important element of investing in crypto, as user funds are a prime target for cybercriminals looking to make a quick buck.