Explained: The Atomic Wallet Hack (June 2023)

Atomic Wallet is a well-established software wallet that was first launched in 2017. In June 2023, attacks against the wallet’s users netted an attacker over $35 million.

Inside the Attack

The underlying root cause of the Atomic Wallet hack is unknown and currently under investigation. Once further details are available, this post will be updated to include the latest information.

Despite the lack of further information, some theories have emerged. For example, it has been noted that the techniques used to launder the cryptocurrencies are similar to those used by the Lazarus Group, indicating that they may have been involved in the attack. 

Other theories include the possibility that the Atomic Wallet application contains vulnerabilities that could expose the private key or that the private keys may have been accidentally exposed, similar to what happened with a 2022 Solana hack and Slope servers.

Lessons Learned From the Attack 

The Atomic Wallet hack — whatever the cause — underscores the potential risks of storing crypto in software wallets. For more information on wallet security best practices, check out our blog.