Atomic Wallet announced that it has received reports of compromised wallets and is making every effort to investigate and analyze the situation.
Cryptocurrency security company SlowMist said it could be a supply chain attack (hackers tamper with the software source code on the server for ordinary users to download), considering the wallet's official website has recently undergone a major version update.
Atomic wallet was noted as a cryptocurrency wallet that provides the ability to manage, trade, buy and stake more than 1000 coins and tokens. In addition, in theory, users were said to hold their own private keys and these keys were not shared with Atomic Wallet.
A supply chain attack is a type of cyber attack that directly targets the software development or distribution process rather than end users. Hackers can corrupt the software source code or distribution mechanism, infecting large numbers of users with malicious code or backdoors.
Atomic Wallet is not the first cryptocurrency wallet to be hit by a supply chain attack. In 2018, hackers managed to steal over $13 million in Ethereum from users by hijacking the DNS servers of MyEtherWallet, a web-based wallet service, and redirecting users to a phishing site.
*Not investment advice.