Atomic Wallet Hack: Stolen Crypto Moved Through Mixing Service Linked To North Korean Hackers

Scott Matherson

2 years ago

3 mins read

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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 tweet 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.

Total market cap recovers above $1.08 trillion | Source: Crypto Total Market Cap on TradingView.com

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 added that less than 1% of its monthly users were impacted by the hack. However, some users 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.

Featured image from Discover Magazine, chart from TradingView.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

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