According to blockchain analytics firm Elliptic, stolen assets from the latest Atomic Wallet hack were moved through a mixing service. While mixers and blenders provide privacy for legitimate crypto users, they are also commonly misused by hackers and scammers to hide stolen funds.
Elliptic exposes money laundering related to Atomic Wallet hack
Last week, hackers broke the non-custodial decentralized wallet, Atomic Wallet, and made off with more than $35 million worth of various crypto assets from unsuspecting users.
However, the hackers didn’t stop there. In an attempt to cover their tracks, they moved the stolen money through a crypto mixing service to cover up the source of the money.
In a tweet recently created by Elliptic, the company’s investigative team revealed it tracked down the money stolen in the attack on Sinbad.io, a mixer linked to North Korea’s nefarious Lazarus Group.
According to the investigation, the stolen assets were traded to Bitcoin and moved through the mixer. Unfortunately, the exact amount delivered to the mixer is still unknown, and Elliptic didn’t specify it in the tweet.
Total market cap recovers above $1.08 trillion | Source: Crypto Total Market Cap on TradingView.com
The aftermath of the hack
Last week, Atomic Wallet became the latest crypto company to fall victim to a security breach. Over the weekend, users began flooding Twitter with complaints that digital assets like Tether’s USDT, Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE) had mysteriously disappeared from their wallets. Some customers have even reported losing all of their cryptocurrency holdings completely.
Atomic Wallet also confirmed reports of compromised wallets on its platform. Although the details of how the hack happened have not been released, it is very likely that it was a direct phishing attack.
Company added that less than 1% of monthly users were affected by the hack. Some, however users have claimed otherwise, as the non-custodial decentralized wallet boasts 5 million users.
The investigation into the Atomic Wallet hack is ongoing as authorities work to track down the stolen funds. Unfortunately, cryptocurrencies stolen from hacks are difficult to trace once they have been moved.
There is always a possibility that some or even all of the funds will never be raised due to the anonymous nature of cryptocurrency.
The hack serves as an important reminder that security remains the most important element of investing in crypto, as user funds are a prime target for cybercriminals looking to make a quick buck.
Featured image from Discover Magazine, chart from TradingView.com
