A Non-Custodial wallet, Atomic Wallet, being compromised

[Z-tight]

Plus, their users are still being silenced by the company[2]. For anyone still thinking in using this service - don't do it if you care for your assets.

It is disgraceful honestly, they say they are removing the posts because of privacy and security reasons, when did people posting about the money they lost in a hacked wallet and also requesting for updates become a security and privacy risk. Disgraceful behaviour from Atomic Wallet, after this i don't think any update should even be expected from them on this case, i hope people who still use this wallet understands that they are closed source and they are now acting shady.

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[DaveF]

They made an update to June 3rd Event Statement the other say.
Still says  'not our fault, looking in to it'
https://atomicwallet.io/blog/articles/june-3rd-event-statement

I'm guessing that they hope it just quietly fades away and drops from peoples memories.

-Dave

[Z-tight]

I'm guessing that they hope it just quietly fades away and drops from peoples memories.

And that's exactly what's going to happen, the people who lost funds aren't getting it back for sure, so the only reason why people probably need answers as to what exactly happened is to mitigate a future occurrence. But again, why would people still be using Atomic wallet or any other closed source wallet after what happened, you'll think that most of them would have moved to well reviewed open source wallets like Electrum, but you'd be surprised at the number of victims there would be if another closed source wallet or centralized exchange is hacked or compromised today.

[Wind_FURY]

They made an update to June 3rd Event Statement the other say.
Still says  'not our fault, looking in to it'
https://atomicwallet.io/blog/articles/june-3rd-event-statement

I'm guessing that they hope it just quietly fades away and drops from peoples memories.

-Dave

They should probably start shutting down they're infrastructure, stop downloads of their software, post warnings in their website. A smart hacker could be collecting a list of wallets they can steal coins from and they're probably preparing the logistics of how they can take all of them in one attack.

Shower thought. It's 2025, Bitcoin is in a bull cycle priced at $100,000 per coin, THEN the Atomic Wallet hacker steals more than $1 Billion in Bitoin in one hour.

¯\_(ツ)_/¯

[virasog]

They made an update to June 3rd Event Statement the other say.
Still says  'not our fault, looking in to it'
https://atomicwallet.io/blog/articles/june-3rd-event-statement

I'm guessing that they hope it just quietly fades away and drops from peoples memories.

-Dave

Please find the snip from the same article.

In light of the reports from our users on the 3rd of June, we immediately changed access to all our servers and switched our internal processes to 'under attack mode'. In addition, we are working on a security app update to reduce the chances of potential future attacks. We strongly encourage all our users to keep their wallet apps updated to the latest versions.

Giving lame excuses and what's more, encouraging the users to keep using the same closed source wallet.
If they cared so much about the people, they would have announced that they would be moving towards open source, but not to be.

Anyone who will still trust them is responsible for their loss if the same hack happens again.

[Cricktor]

When I read DaveF's update I had such an intense urge to rant on this [censored] wallet provider giving the probably lamest excuse next to being completely silent. But then self-imposed forum behavior protocol rules were auto-triggered and I slept over it (multiple times moving between rant and na, not worth it, you ranted already, nothing new to say).

Nearly four months have passed and this wallet provider has nothing more to post publicly than "not our fault, looking in to it"?? That's not even a bad joke, that's worse than that. My gutt feeling tells me, they know exactly why they are basically not telling anything. But that's just my speculative thoughts.

Users of Atomic Wallet should take appropriate action and consequences. Anyone who loses coins with Atomic Wallet in the future has to blame themselves for being ignorant and reckless.

[NotATether]

So it looks like Atomic Wallet has absolutely no interest in revealing what was happening to its infrastructure, and  tried to put profit over its users or is trying its best to avoid absolute collapse. Whatever is happening, it does not look good for Atomic at all.

[BitcoinsGreat]

So it looks like Atomic Wallet has absolutely no interest in revealing what was happening to its infrastructure, and  tried to put profit over its users or is trying its best to avoid absolute collapse. Whatever is happening, it does not look good for Atomic at all.

Do we have the data revealing how many users were using the atomic wallet before the hack and how many people are still using this wallet?

To be frank, even if they tell us, what happened, we shouldn't trust them and should not be using that wallet again.

[OmegaStarScream]

Do we have the data revealing how many users were using the atomic wallet before the hack and how many people are still using this wallet?
-snip-

They claim to have 5 million users[1]. It's difficult to say how many have left though, since there is no trading volume, or live data to look at but I don't think many have left because not that many people have lost their funds (again, according to the team).

Atomic Wallet boasts a user base of over 5 million individuals worldwide
-snip-

[Z-tight]

Do we have the data revealing how many users were using the atomic wallet before the hack and how many people are still using this wallet?

No, we cannot get that data, but Atomic wallet claims that the hack only affected less than 0.1% of their userbase, so if that is true, maybe so many people who don't know the right thing to do would still be using Atomic wallet.

To be frank, even if they tell us, what happened, we shouldn't trust them and should not be using that wallet again.

Even if they were not hacked, it is still not recommended to use closed source wallets like Atomic wallet or Trust wallet.

[BlackHatCoiner]

They should probably start shutting down they're infrastructure, stop downloads of their software, post warnings in their website. A smart hacker could be collecting a list of wallets they can steal coins from and they're probably preparing the logistics of how they can take all of them in one attack.

Maybe, I say maybe, that little smart hacker is Atomic wallet themselves. Just a wild conspiracy theory there!  

Do we have the data revealing how many users were using the atomic wallet before the hack and how many people are still using this wallet?

Lol. Would you trust data coming from a company that literally has nothing to say about their software ripping off millions of users' coins? I'm quite having the impression Atomic wallet is closed-source for if it wasn't, even an undergraduate student of CS would be capable of correcting their repo.

[Wind_FURY]

They should probably start shutting down they're infrastructure, stop downloads of their software, post warnings in their website. A smart hacker could be collecting a list of wallets they can steal coins from and they're probably preparing the logistics of how they can take all of them in one attack.

Maybe, I say maybe, that little smart hacker is Atomic wallet themselves. Just a wild conspiracy theory there!  
 

Hahaha then let's add more to that conspiracy theory. Maybe, just "maybe", Atomic Wallet's developers are state-sponsored developers waiting for the right time to cause a wave of chaos which perhaps could make a bear-market-causing-crash. - They will execute their exploit/back-door during the new ATH of the next bull cycle, most probably it will be on 2025 or 2026.

Plus did anyone notice that the exploits stop when users start to "notice things".

¯\_(ツ)_/¯

[BitcoinsGreat]

Do we have the data revealing how many users were using the atomic wallet before the hack and how many people are still using this wallet?

No, we cannot get that data, but Atomic wallet claims that the hack only affected less than 0.1% of their userbase, so if that is true, maybe so many people who don't know the right thing to do would still be using Atomic wallet.

Everyone who hears this news should stop using it even if they do not fall in this 0.1% category. Once hacked, it can be exploit again either by the  hackers or by the team themselves.

Even if they were not hacked, it is still not recommended to use closed source wallets like Atomic wallet or Trust wallet.

Trust Wallet is even more widely used than the Atomic wallet. By the way, if all closed source wallets are not recommended, why do we use/promote Ledger Nano (Hardware Wallet) ? It is also a closed source as I know.

[JeromeTash]

Trust Wallet is even more widely used than the Atomic wallet.

It doesn't matter if it's widely used. A closed source wallet should not be recommended to anyone when there are several open source wallets
The problem with a closed source wallet is that you are most of the time in the blind until a hack happens - Trust Wallet Hacked. Understanding How It Happened and What to Do Next

By the way, if all closed source wallets are not recommended, why do we use/promote Ledger Nano (Hardware Wallet) ? It is also a closed source as I know.

Who is we?

AFAIK, I haven't seen members recommend ledger Nano for a while. It's receiving heavy criticism even when they tried to make a comeback by faking their source code status

[Z-tight]

By the way, if all closed source wallets are not recommended, why do we use/promote Ledger Nano (Hardware Wallet) ? It is also a closed source as I know.

It is not recommended to use closed source wallets because you cannot review the code, and not because all closed source wallets are unsafe, but we can agree that it is much better to use a well reviewed open source wallet, than a closed source wallet that the code cannot be reviewed. Too many people wrongly think that open source automatically means safety, it doesn't.

Ledger, just like Trezor is a hardware wallet that has been 'around' for a long time, and even though they were closed source, their devices were still recommended until they launched the ledger recover service, as a company that should help you store your keys offline, they ought to know that it is unsafe sending it to third parties, when they initially said it couldn't leave the secure element chip. This is the main reason why Ledger shouldn't be recommended, and other things, like being closed source and telling lies.

[dkbit98]

They made an update to June 3rd Event Statement the other say.
Still says  'not our fault, looking in to it'

I would be interested to find out what math they used exactly to calculate that only 0.1% atomic users got affected by this issue 
In best case this can only be people who contacted them and reported loss of coins with transactions they didnt make, and nobody knows how many people never contacted atomic amateurs.
New statement can be used for bitcoin wallet: not open source, not your coins.

[BitcoinsGreat]

By the way, if all closed source wallets are not recommended, why do we use/promote Ledger Nano (Hardware Wallet) ? It is also a closed source as I know.

Who is we?

AFAIK, I haven't seen members recommend ledger Nano for a while. It's receiving heavy criticism even when they tried to make a comeback by faking their source code status

I just mean that we usually say that hardware wallets are safe and when we talk about hardware wallet, most common ones are Trezor and Ledger, Anyways now with so many issues with closed source wallets, i would avoid the closed source hardware wallets too.

New statement can be used for bitcoin wallet: not open source, not your coins.

That is what i was thinking too. The centralized wallets do not give you the private keys and the closed source ones, can still know our private keys through the source code, without the need to make the user being aware of it. 

[Z-tight]

I think should also be visible in the Beginners and Help section to warn newbies out there and start importing their wallets to those who are not yet affected.  Transferring their fund by importing the 12 words into other wallets like Electrum might be a good step or any wallets that support importing BIP39 seed phrases.

Importing the seed phrase of a compromised or closed source wallet into a good and well reviewed software wallet like Electrum is not good practice, your wallet can still be compromised because you are still using a seed phrase that you can't verify how it was generated. What you should do is create a new wallet in Electrum and send out all your funds from the closed source or compromised wallet into the new wallet you have created and verified.

[Pmalek]

Importing the seed phrase of a compromised or closed source wallet into a good and well reviewed software wallet like Electrum is not good practice, your wallet can still be compromised because you are still using a seed phrase that you can't verify how it was generated. What you should do is create a new wallet in Electrum and send out all your funds from the closed source or compromised wallet into the new wallet you have created and verified.

Unless you absolutely have to, you shouldn't be importing your seed or keys into multiple wallets regardless if they are open-source or not. Luckily, it doesn't cost anything to generate a new seed and create a new wallet, and it's safer than using the same one in multiple software.

The person you quoted also doesn't seem to know that importing a seed phrase into a second software isn't equivalent to having sent the coins from software A to software B. The import only duplicates the old wallet, and your seed is now entered into two or more software depending on how many times you imported the seed. The coins haven't "moved" anywhere.

[DaveF]

They made an update to June 3rd Event Statement the other say.
Still says  'not our fault, looking in to it'
https://atomicwallet.io/blog/articles/june-3rd-event-statement

I'm guessing that they hope it just quietly fades away and drops from peoples memories.

-Dave

And still no update. Really wonder if they are looking into it or hoping it goes away.
Since people are still using it and talking about using it and so on, I guess people don't care about their crypto.

If you want to use a wallet like this how about I just post a bunch of addresses that belong to me and I'll send you some crypto back later if I feel like it.
If not I'll just keep it. Seems to be the same service as Atomic.

-Dave