A Non-Custodial wallet, Atomic Wallet, being compromised

[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

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

I really do not understand the affiliation of the people with atomic wallet who are still using it ? Or maybe they are not aware of this vulnerability in the atomic wallet  

We are not short of Non-Custodial wallets in the market that we have no option but to use the Atomic wallet  

The one who knows about the history of atomic wallet and still does not quit it, i am sorry that they have no idea how to protect their assets. They will only learn lessons once they themselves lose their money.

[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

But i would count this blog (which updated on October 19 without creation date) as an update, https://atomicwallet.io/blog/articles/2m-of-suspicious-deposits-frozen-on-centralised-exchanges. But it's rather vague and there's no mention whether the victim receive their coin back. And assuming that blog is being truthful and accurate, it's interesting the hacker use combination of bridge, exchange and mixer to hide trace.

It still does not tell what happened. That is IMO still the issue.
Even a 'we don't know and are still looking into it' is better then this.
Was it on their end in terms of the servers. Was is on the app end? Was it a malicious library / supply chain attack?

So now according to them some funds are frozen. Great. What is the next step? Do they have a next step?

-Dave

[DaveF]

Just as an FYI:

https://www.coindesk.com/policy/2023/11/29/crypto-mixer-sanctioned-by-us-treasury-for-north-korea-allegations-as-fbi-and-finish-police-seize-website/
https://www.elliptic.co/blog/analysis/35-million-atomic-wallet-hacker-funnels-crypto-to-north-korea-s-favored-mixer


But still no real info coming out of atomic about what happened or how it happened.

-Dave

[Cricktor]

But still no real info coming out of atomic about what happened or how it happened.

That should already tell something and it's not good news. How many months have already passed? I lost track and kind of don't care anymore, too. I don't expect any honest statement of truth from Atomic, anyway.

Atomic is either itself incapable or incompetent to execute own investigations or too cheap to pay a capable forensic company to do it for them OR they know what happened and have chosen to keep the facts burried under a pile of silence and nonsense bits of "news" about it.

With such a post-mortem handling policy Atomic has forfeited all trustworthiness in my opinion. I wouldn't use this wallet anymore and ever again. I used this wallet only briefly to collect fork coins of older Bitcoin UTXOs a few years ago and I moved my coins out of this wallet quickly and long before the last incident happened.

[airbin]

You're absolutely right, but it's not the idea to say I'm not interested, the collective interest is necessary for the support of the entire crypto ecosystem, a response to what happened has to be demanded, That allows support for the crypto environment, entrepreneurs, and end-users.

[Pmalek]

<Snip>

I wouldn't get my hopes up that Atomic Wallet will release any comments, especially anything that makes them look bad or guilty. I don't doubt they have money for advertising and they will spend it to keep showing their wallet in good light. Crypto users quickly forget. Blind them with an airdrop or two, a special deal, or perhaps an NFT with promises of huge profits in the future, and many of them will come back to using Atomic Wallet, having forgotten all about this incident a long time ago.

[hugeblack]

Crypto users quickly forget. Blind them with an airdrop or two, a special deal, or perhaps an NFT with promises of huge profits in the future, and many of them will come back to using Atomic Wallet, having forgotten all about this incident a long time ago.

such topics will not appear first when searching, these wallets do not give any warnings, and there is no guarantee that they have fixed everything. Therefore, good marketing in this industry is able to cover up software failures, and unfortunately some will return to using the wallet with the increase in the price of Bitcoin. I only hope that these topics will have more discussion on social media.

[DaveF]

Bit of a necro bump but: https://bitcointalk.org/index.php?topic=5499189.0

I have *not* read through any of it and obviously cannot tell if any of it is true or not but according to what they are saying Atomic is part of a larger scam.

Might be worth a read / look if you have the time.

-Dave

[Wind_FURY]

Bit of a necro bump but: https://bitcointalk.org/index.php?topic=5499189.0

I have *not* read through any of it and obviously cannot tell if any of it is true or not but according to what they are saying Atomic is part of a larger scam.

Might be worth a read / look if you have the time.

-Dave

👀

If all of that is verified 100% true, then that answers our question why Atomic Wallet would never shut down their infrastructure to undergo some security checks and audits after many "hacks". Plus I have also heard that Changelly and HitBTC were selectively scamming their own users, then based on the new evidence, it's probable that they are doing it to the users of their "wallet software" too.

Atomic Wallet is still available in the Apple Appstore.

¯\_(ツ)_/¯

[UmerIdrees]

Atomic Wallet is still available in the Apple Appstore.

¯\_(ツ)_/¯

Unfortunately, the Atomic Wallet app and site is still operational. I was checking its traffic on its website https://atomicwallet. i o/ and found that in May 2024 alone, 339K users visited the site which is a very big number. Also, 15% of the traffic to the site is from the United States of America followed by 10% traffic through Russia.

This is really concerning that Atomic Wallet was compromised in the history and also they are deliberately scamming their users but still, they are able to run their business. 

[NotATether]

Bit of a necro bump but: https://bitcointalk.org/index.php?topic=5499189.0

I have *not* read through any of it and obviously cannot tell if any of it is true or not but according to what they are saying Atomic is part of a larger scam.

Might be worth a read / look if you have the time.

-Dave

👀

If all of that is verified 100% true, then that answers our question why Atomic Wallet would never shut down their infrastructure to undergo some security checks and audits after many "hacks". Plus I have also heard that Changelly and HitBTC were selectively scamming their own users, then based on the new evidence, it's probable that they are doing it to the users of their "wallet software" too.

Atomic Wallet is still available in the Apple Appstore.

¯\_(ツ)_/¯

Alas, even Wikipedia says that the Atomic Wallet was a "hack", despite the fact that the Atomic Wallet company never allowed the FBI to investigate the incident!

https://en.wikipedia.org/wiki/Lazarus_Group

June 2023 Atomic Wallet attack
In June 2023 over $100 million in cryptocurrency was stolen from users of the Atomic Wallet service,[53] and this was later confirmed by the FBI.[54]

I would go and update the page, but two problems - One is that there are no verifiable sources who have published about this yet, and two, even if some news publications report on this, Wikipedia editors will still revert my edits because it's not like the New York Times is publishing about it still.

[DaveF]

....This is really concerning that Atomic Wallet was compromised in the history and also they are deliberately scamming their users but still, they are able to run their business. 

You can show people the info but you can't make them think.

Look at how many people sill use some of the crypto casinos that have pages and pages of complaints here and yet they gamble and then can't get their BTC out and them open up yet another post in the Scam Accusations section. Which does not matter since the next person is still going to go there and gamble.....

-Dave

[Wind_FURY]

Bit of a necro bump but: https://bitcointalk.org/index.php?topic=5499189.0

I have *not* read through any of it and obviously cannot tell if any of it is true or not but according to what they are saying Atomic is part of a larger scam.

Might be worth a read / look if you have the time.

-Dave

👀

If all of that is verified 100% true, then that answers our question why Atomic Wallet would never shut down their infrastructure to undergo some security checks and audits after many "hacks". Plus I have also heard that Changelly and HitBTC were selectively scamming their own users, then based on the new evidence, it's probable that they are doing it to the users of their "wallet software" too.

Atomic Wallet is still available in the Apple Appstore.

¯\_(ツ)_/¯

Alas, even Wikipedia says that the Atomic Wallet was a "hack", despite the fact that the Atomic Wallet company never allowed the FBI to investigate the incident!

https://en.wikipedia.org/wiki/Lazarus_Group

June 2023 Atomic Wallet attack
In June 2023 over $100 million in cryptocurrency was stolen from users of the Atomic Wallet service,[53] and this was later confirmed by the FBI.[54]

I would go and update the page, but two problems - One is that there are no verifiable sources who have published about this yet, and two, even if some news publications report on this, Wikipedia editors will still revert my edits because it's not like the New York Times is publishing about it still.

Two of their team members have self-doxxed their identities, Konstantin Gladych and Charlie Shrem, https://atomicwallet.io/about-us

I made a quick search and some surface-reading on the both of them, and Gladych didn't look that he had a problematic past of scamming people. But Charlie Shrem did have some things in his past that were questionable. Although, that doesn't prove or predict what tendencies he may have in the future.

[Wind_FURY]

Shower thought. After the recent hack on ByBit exchange, is possible that the Atomic Wallet developers deceived to out-source some of the work on the app to North Korean hackers? There are probably hidden backdoors in the app that may never be found, no?

Plus the hackers are probably smart enough to steal smaller amounts of Bitcoin so that the users continue using the wallet, and the developers do not shut down their infrastructure.

[Cricktor]

~~~

Sounds a bit far fetched to me. Why would a company out-source code development knowingly to such an evil group that you can't really control (or I misunderstood you completely)?

More plausible would be an infiltration attempt of such state controlled hackers, offering affordable coding manpower but hiding their real origin. I don't want to know how many "moles" work in software companies where code quality isn't highest priority. Just my shower thought...

Has Atomic Wallet gone down the drain? I guess, not really. The short-attention Tic-Toc-brain-washed strangers to DYOR forget quickly or fail to ever research in the first place.

A closed-source wallet should be a no-go or you play with fire and can get burned. Or it's a calculated risk you take for small amounts you can afford to loose. Some years ago I used Atomic Wallet for fork coins of Bitcoin for a short period of time. I took the risk because I didn't trust the fork coin wallets either. One must die some little deaths every now and then...

[Wind_FURY]

~~~

Sounds a bit far fetched to me. Why would a company out-source code development knowingly to such an evil group that you can't really control (or I misunderstood you completely)?

More plausible would be an infiltration attempt of such state controlled hackers, offering affordable coding manpower but hiding their real origin. I don't want to know how many "moles" work in software companies where code quality isn't highest priority. Just my shower thought...

Has Atomic Wallet gone down the drain? I guess, not really. The short-attention Tic-Toc-brain-washed strangers to DYOR forget quickly or fail to ever research in the first place.

A closed-source wallet should be a no-go or you play with fire and can get burned. Or it's a calculated risk you take for small amounts you can afford to loose. Some years ago I used Atomic Wallet for fork coins of Bitcoin for a short period of time. I took the risk because I didn't trust the fork coin wallets either. One must die some little deaths every now and then...

Ser, you didn't know? It's actually common practice to out-source programming jobs or hire coders remotely in the modern era of software development.

There's a hiring joke "process" that make applicants say "I hate Kim Jong Un" or some sort of joke about Kim Jong Un, and if the applicant refuses, then he's most probably a North Korean agent trying to get in the company.

[Z-tight]

Has Atomic Wallet gone down the drain? I guess, not really. The short-attention Tic-Toc-brain-washed strangers to DYOR forget quickly or fail to ever research in the first place.

If people still store their funds in centralized exchanges despite all the recent events relating to hacks and their collapse, then you can be sure that Atomic wallet is surely going nowhere despite what happened some years ago with customers' wallets getting compromised.

People do not learn, be it either using closed source wallets or using a centralized exchange like a bank or storing all of their funds in an online wallet, they don't learn until they lose it all.

[Cricktor]

~~~

I'm not in the software development business. I've no first hand experience who hires whom to code stuff. Nice joke, btw, fool-proof method. What can possibly go wrong?!

... despite what happened some years ago with customers' wallets getting compromised.

Well, it's just about 20 months ago only, the last larger severe incident when a lot of users lost coins with Atomic Wallet under very dubious circumstances. Seems to me, some have a really short memory (I'm not addressing you in particular).

People do not learn, be it either using closed source wallets or using a centralized exchange like a bank or storing all of their funds in an online wallet, they don't learn until they lose it all.

This is the sad part in crypto coin space as it will hit all sorts of people who don't think about consequences when they do what you criticize. I have no good cure against this plague, except spinning the prayer wheels over and over again.

[Becassine]

People do not learn, be it either using closed source wallets or using a centralized exchange like a bank or storing all of their funds in an online wallet, they don't learn until they lose it all.

Some people never learn. Even after FTX (and the others hacks, scams, rug pulls ...), they put their coins back on other CEXs. They think they're traders, they follow influencers paid to pump and dump a shitcoin or a unknown meme, and if they calculated how much they'd have today just doing DCA and hodl on a hardwarewallet, they'd immediately realize that they'd have lost nothing and above all gained in physical and mental health.

[DaveF]

People do not learn, be it either using closed source wallets or using a centralized exchange like a bank or storing all of their funds in an online wallet, they don't learn until they lose it all.

Some people never learn. Even after FTX (and the others hacks, scams, rug pulls ...), they put their coins back on other CEXs. They think they're traders, they follow influencers paid to pump and dump a shitcoin or a unknown meme, and if they calculated how much they'd have today just doing DCA and hodl on a hardwarewallet, they'd immediately realize that they'd have lost nothing and above all gained in physical and mental health.

It's amazing the number of posts you see in other locations like reddit that are more or less. "I lost a ton of money because this exchange took my money, but it's all good since I am putting more money in this other exchange since it's so much better" Or "It turns out Dave's Itchy Lefty Testicle Coin was a rug pull scam. But Dave's Itchy Right Testicle Coin has to be 100% legit"

But there are still people buying gold at 15% over spot from ads they see on TV.

-Dave