Atomic Wallet Freezes $2M in 'Suspicious Deposits' on Exchanges

Introduction

Cryptocurrency wallet Atomic Wallet has taken action to freeze $2 million in "suspicious deposits" in collaboration with major crypto exchanges. The wallet firm has worked with blockchain intelligence firms Chainalysis and Crystal to identify and contain the threat.

The Sophisticated Methods

According to reports from Chainalysis and Crystal, the threat actor used sophisticated methods such as bridges and mixers to move the funds to the Bitcoin blockchain. Most of the funds ended up on the Tron blockchain and Bitcoin network, with the Avalanche bridge being used as a means of transfer.

Collaboration with Exchanges

Atomic Wallet expressed gratitude to the centralized cryptocurrency exchanges for their swift response and cooperation in freezing the assets linked to the reported transactions. Their collaboration played a crucial role in mitigating the impact of the incident on affected users.

Past Hack and Legal Action

This news comes several months after Atomic Wallet experienced a major hack in June 2023, resulting in the loss of millions in stolen crypto assets. The exact conditions that led to the exploit have not been clarified. In August, a group of affected users launched a class action against the firm, seeking to recover $100 million in losses.

Conclusion

Atomic Wallet's actions to freeze suspicious deposits demonstrate the importance of collaboration in the crypto industry to mitigate threats and protect users' assets. However, the incident also highlights the ongoing challenges and risks associated with cryptocurrency security.