Crypto catastrophe strikes some Atomic Wallet users, over $35M thought stolen

As much as $35 million worth of cryptocurrency may have been stolen in a large-scale attack on Atomic Wallet users, with one investigator claiming losses could potentially exceed $50 million. The Atomic Wallet app's makers first reported June 3 that some folks were complaining some crypto had been taken from their wallets and …

[druck]

Bug or...

...feature of just about every Crypto wallet or exchange out there.

[sitta_europea]

"...I kept all my money in crypto."

Mmmm.

[Version 1.0]

"I kept all my money in crypto ... everything was so wonderfully stiff but now it just got very floppy.

You will probably think I'm listening to Kevin Bloody Wilson at work now ... yes that's what's happening - it's fine because everyone else has left work now.

[Ace2]

That person went broke a lot longer ago than they realize.

[DwarfPants]

They may even have been; broke, millionaire, broke, millionaire, broke, broke, destitute

While(1)

{

CryptoBalance = rand()

}

[dinsdale54]

I kept all my money in $SINGLEPOINTOFFAILURE has been stupid for as long as savings have existed. Crypto just seems like a good way to herd the financially naive into one place.

[Blazde]

"Your funds are not located in the wallet itself, [they] are safely stored on the blockchain"

When are they going to start regulating this sort of misleading crap like any other financial services sector? Oh hey your stolen funds are *still* safely stored on the blockchain in someone else's address. Look at that.

Or better yet just ban crypto-currency completely. Now it can credibly be claimed it's exacerbating the proliferation of nuclear weapons to a state incapable of making peace with it's neighbour in 70 years there is some decent big picture justification even for those happy with the day-to-day security consequences.

[Jedit]

"When are they going to start regulating this sort of misleading crap"

Never. "No regulation" is the whole point of crypto. If it's regulated, the bros won't trust it.

[Anonymous Coward]

Re: "Your funds are not located in the wallet itself, [they] are safely stored on the blockchain"

>"... better yet just ban crypto-currency completely"

Evidence of a misunderstanding of crypto-currency. Short of shutting down the ENTIRE Internet it cannot be banned or blocked. And if the entire Internet is shut down, then all traditional fiat banking is gone and it is TEOTWAWKI anyway.

[Blazde]

Re: "Your funds are not located in the wallet itself, [they] are safely stored on the blockchain"

Of course it can be banned. It will still exist like stolen old masters and child porn are banned yet exist, but your average law abiding citizen won't put their life savings into it, and even your average non-law abiding citizen will have extreme difficulty finding an institution happy to flaunt the layers of international money laundering law built up in recent decades.

The advocates who think it can't be brought down by governments are evidencing a misunderstanding of the power of the real world economy. It's a nice idea crypto-currency is untouchable by governments but it ain't true. The crypto part is (probably) untouchable, yes. The currency part, not so much.

[X5-332960073452]

Re: "Your funds are not located in the wallet itself, [they] are safely stored on the blockchain"

(And I Feel Fine)

[Clausewitz4.0]

Wallet Private Key

I do not know this wallet, nor coders or company behind it.

But it should be obvious that, either:

1) Weak private key generation algorithm was used

Or

2) Software was leaking private key to 3rd parties ( supply chain attack or exit-scam )

[Pier Reviewer]

Re: Wallet Private Key

Based on the article it seems the thieves primarily went after larger values. If they had every user’s priv keys you’d think they would take everything (many small balances = one large balance).

The targeted nature might imply phishing. Would be interested to see how many victims use gmail after their recent “stamp of approval” SNAFU…

[Anonymous Coward]

Oh well

At least nothing of actual value was lost.

[Neil Barnes]

went broke in a split second, as I kept all my money in crypto

Every time I point out that crypto currency might not be the best idea, I get down-voted. And yet...

[Phil O'Sophical]

security?

because information like the security keys and backup phrase are stored locally on the device, "if your device is compromised, the wallet can be compromised too."

Sounds like the cryptocurrency equivalent of keeping the front door key under the mat.

[Anonymous Coward]

Stop calling it crypto -- it is crypto-currency

So stop! Just stop!

[Jan 0]

Re: Stop calling it crypto -- it is crypto-currency

No, it's imaginary-, slippery-, lost-, foolish-, err currency.

[Derezed]

Re: Stop calling it crypto -- it is crypto-currency

I liked the other thread where it was called "Kleptocurrency". That made me happy.

[Anonymous Coward]

Re: Stop calling it crypto -- it is crypto-currency

nice

[Winkypop]

Re: Stop calling it crypto -- it is crypto-currency

I agree.

We should just cut to the chase and call it: gone.

[Anonymous Coward]

Idiots.

And still, people give their money willingly to the crypto scam.