SECURITY

Long-standing hot wallet Atomic Wallet hacked for over $35 million, where is the secure wallet?

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Long-standing hot wallet Atomic Wallet hacked for over $35 million, where is the secure wallet?

Atomic Wallet, a self-custody wallet established at least in February 2018, where users manage their own mnemonic seed, experienced multiple reports of user asset loss on 6/3.

Atomic Wallet Under Investigation, Security Community Discovers Millions in Losses

The official statement on 6/4 mentioned that they are currently collaborating with a security company to investigate the incident, and the reason for the losses is still unclear.

According to the security firm SlowMist's investigation, the known address losses have reached $14.8 million. They are also examining the total damage based on the addresses provided by blockchain detective Zach.

Blockchain detective Zach estimates that users have lost over $35 million in total, with five major holders accounting for $9.7 million in losses.

Both Hot and Cold Wallets Compromised, Is Multi-Signature the Better Option?

This incident prompted DeFi KOL Ignas to share his thoughts. He expressed surprise that a wallet with years of experience could still be hacked. After trying various software wallets, for peace of mind, he prefers to use a multi-signature wallet for long-term storage.

While hardware cold wallets are great, if a physical wallet like Trezor is stolen by hackers, the assets could still be compromised. Recalling the news of Trezor being hacked. On the other hand, Ledger's attempt to introduce Ledger Recover also failed. Backlash against Ledger's introduction of decentralized custody services

He suggests that it is better to store a multi-signature wallet in a cold wallet, ensuring that the private keys of three out of the three are properly secured! Whether it's losing the mnemonic phrase or the cold wallet, having at least two backups can be a lifesaver.