Atomic Wallet freezes $2m in ‘dubious deposits’ on exchanges

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

Announcing the news to Cointelegraph on October 19, Atomic Wallet said blockchain intelligence firms Chainalysis and Crystal helped identify and contain the wallet's threat.

Citing reports from Chinalysis and Crystal, AtomicWallet reported that a “threat actor” used sophisticated methods to connect the currency to the Bitcoin blockchain, including bridging and mixing. “Most of the funds eventually ended up on the Tron blockchain and the Bitcoin network,” the report reads.

The report specifically mentions that the funds were bridged by Avalanche and then bridged to the Tron blockchain.

“Atomic Wallet is deeply grateful to the centralized cryptocurrency exchange for quickly freezing assets related to reported transactions. Their quick response and cooperation was critical to minimizing the impact of the incident on some users,” the company said in the announcement.

Atomic Pocket declined to provide Cointelegraph with additional details about which kriptovalyutnyh exchanges partnered with the wallet organization and reduced its funds. “To protect the integrity of the ongoing investigation, we cannot share the details of the transactions for which funds have been frozen. There is no time to provide additional information,” a spokesperson for the organization said.

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The news comes months after Atomic Wallet suffered a massive attack in June 2023, and the platform reportedly lost millions in stolen crypto assets. Atomic Wallet did not explain exactly what conditions led to the exploit.

In August, a group of affected Atomic Wallet users reportedly filed a class action against the company after a massive breach and $100 million in damages.

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