Elliptic, a blockchain analysis firm, reports that stolen assets from the most recent breach of Atomic Wallet have been moved through a mixing service. While mixers and blenders are intended to provide confidentiality for legitimate crypto users, they are frequently abused by hackers and con artists to conceal stolen funds.
Elliptic Exposes Money-Laundering Linked To Atomic Wallet Hack
Last week, hackers accessed the non-custodial decentralized wallet, Atomic Wallet, and made off with over $35 million in different crypto assets from unsuspecting users.
The hackers weren’t going to stop there, though. In an effort to cover their tracks, they moved the stolen funds through a crypto-mixing service to disguise the source of the money.
In a tweet recently published by Elliptic, the company’s investigating team revealed that it had tracked funds taken in the attack to Sinbad.io. This mixer has been linked to the nefarious Lazarus Group of North Korea.
According to the investigation, the stolen assets were converted to Bitcoin and moved through the mixer. Unfortunately, the exact amount delivered to the mixer is still unknown, which Elliptic did not mention in the tweet.
The Hack’s Aftermath
Last week, Atomic Wallet became the newest crypto firm to fall victim to a hack and have its security compromised. During the weekend, users began flooding Twitter with complaints that digital assets such as Tether’s USDT, Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE) had suddenly vanished from their wallets. Some customers have even claimed that they have completely lost all of their cryptocurrency holdings.
Atomic Wallet also confirmed reports of the jeopardized wallets on its platform. While the details of the hack weren’t shared, it is highly probable to be a direct phishing attack.
The company added that less than 1% of its monthly clients were affected by the hack. However, some users have stated otherwise, as the non-custodial decentralized wallet boasts 5 million users.
The investigations into the Atomic Wallet hack are continuing as authorities work to track down the stolen funds. Unfortunately, cryptocurrencies stolen in hacks are difficult to find once moved around.
There is always a chance that some or even all of the funds may never be recovered due to the anonymous nature of cryptocurrency.
The hack is an important warning that security remains the most crucial element of investing in crypto, as user funds are a prime target for cybercriminals looking to make an easy buck.