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Atomic Wallet users want more responses, despite the fact that the decentralized wallet provider has finally released a full “event statement” regarding the June exploit, which was estimated to have cost up to $100 million.
In a June 20 blog post — the first major update from the firm since the June 3 exploit — Atomic Wallet stated that there have been no new confirmed cases since initial reports of the breach.
He confirmed that “less than 0.1%” of the app’s users were affected. Atomic Wallet stated this at least once in a now-deleted tweet dated June 5th. This figure is still rejected by many online.
June 3rd Event Statement. To summarise, less than 0.1% of Atomic app users have been affected. Since then, no new cases have been reported.
None of the possible issues are confirmed as potentially causing massive breaches, at least in the latest app versions. Builds are verified… pic.twitter.com/YTcOFpo3M3
— Atomic-cryptocurrency Wallet (@AtomicWallet) June 21, 2023
Atomic Wallet did not specify what exactly led to the exploit, but only outlined the four most “probable” reasons, including a virus on user devices, an infrastructure breach, a man-in-the-middle attack, or malicious code injection.
However, none of these scenarios are “confirmed as potentially causing massive breaches,” Atomic Wallet said, adding that its “security infrastructure has been upgraded.”
In addition, Atomic Wallet said it is working on an update to the app to improve security, which is reviewed by “external auditors”.
However, questions have arisen around certain aspects of the June 20 statement.
Former head of smart contract audit at cybersecurity firm Hacken, Yevgeniy Bezugly, asked who the “external auditors” mentioned are and where users can find their reports.
Related: Online sleuth ZachXBT sued for defamation after claiming plaintiff siphoned funds from project
Uriel Ohayon, CEO of rival wallet provider ZenGo, asked why Atomic Wallet needed to update its security infrastructure and what happened for it to take such a step.
“Our security infrastructure has been updated.”
why did you need to update it? what happened?
— Ouriel @ZenGo (@OurielOhayon) June 21, 2023
Others have highlighted the wide range of probabilities presented by the firm as evidence that it is no closer to understanding how the exploit happened.
Atomic Wallet said it sees the laundering and mixing of user funds, most of which remain traceable. He enlisted the help of blockchain analytics firms Chainalysis and Crystal Blockchain. It says the investigation is still ongoing.
Chainalysis told Cointelegraph that it cannot comment on its work or findings regarding Atomic Wallet.
Cointelegraph contacted Atomic Wallet to clarify aspects of its statement. Crystal Blockchain was also contacted to comment on their findings related to Atomic Wallet.