Atomic Wallet users were left wanting more answers, despite the decentralized wallet provider finally releasing a full “event statement” about the exploit in June – which some speculated ran into of $100 million in losses.
In a June 20, blog post — the first major update from the company since the June 3 exploit — Atomic Wallet claimed there were no new confirmed cases after initial reports of hack.
It reiterated that “less than 0.1%” of the app’s users were affected. Atomic Wallet made the claim at least once before in a now-deleted tweet on June 5. The figure is still widely dismissed online.
June 3 Event Statement. To summarize, less than 0.1% of Atomic app users were affected. Since then, no new cases have been reported.
None of the possible issues have been confirmed to cause multiple breaches, at least in the latest version of the app. Verified builds… pic.twitter.com/YTcOFpo3M3
– Atomic – Crypto Wallet (@AtomicWallet) June 21, 2023
Atomic Wallet did not specify what exactly led to the exploit, only outlining the four most “possible” causes, including a virus on user devices, an infrastructure breach, a human attack -in the middle or injection of malware code.
However, none of these scenarios have been “confirmed to potentially cause significant breaches,” Atomic Wallet said, adding that “the security infrastructure has been updated.”
Additionally, Atomic Wallet says an app update to improve security is in the works, which has been verified “by external auditors.”
However, questions revolved around some aspects of the June 20 statement.
Former smart contract audit head of cybersecurity firm Hacken, Yevhenii Bezuhlyi, ASK who are mentioned as “external auditors” and where users can find their statements.
Related: On-chain sleuth ZachXBT is being sued for libel after the plaintiff claimed that funds were drained from the project
Ouriel Ohayon, the CEO of rival wallet provider ZenGo asked why Atomic Wallet needed to update its security infrastructure and what happened to make this step.
“Our security infrastructure has been updated.”
why do you need to update it? What happened?
— Ouriel @ZenGo (@OurielOhayon) June 21, 2023
Others have highlighted the wide range of possibilities the company has shown as evidence that it is no closer to understanding how the exploitation occurred.
Atomic Wallet said it can detect the laundering and commingling of user funds, much of which remains traceable. It enlisted the help of blockchain analytics firms Chainalysis and Crystal Blockchain. He said that the investigation is still ongoing.
Chainalysis told Cointelegraph that it cannot comment on the work or findings related to Atomic Wallet.
Cointelegraph has contacted Atomic Wallet for clarification on aspects of its statement. Crystal Blockchain has also been contacted for comment on findings related to Atomic Wallet.
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