In a response to a security breach, Atomic Wallet, a cryptocurrency wallet provider, has undertaken a proactive approach by freezing approximately $2 million in funds deemed “suspicious.”
This endeavour has materialised through a collaborative effort involving prominent cryptocurrency exchanges and the invaluable assistance of blockchain intelligence firms Chainalysis and Crystal.
According to Atomic Wallet’s recent disclosure on its blog, the cryptocurrency wallet provider shared that the nature of the threat necessitated the utilisation of advanced techniques, including bridges and mixers, to obscure the origins and destinations of these funds within the Bitcoin blockchain.
In particular, the report underscores that the funds in question were routed through the Avalanche bridge before being subsequently transferred to the Tron blockchain.
The report stated:
“Most funds have ultimately ended up on the Tron blockchain and Bitcoin network.”
Atomic Wallet has, however, refrained from divulging the specific details regarding the participating cryptocurrency exchanges and their role in freezing the funds.
A spokesperson from the film explained:
“We cannot share the details of the exchanges where funds have been frozen at this stage to maintain the integrity of the ongoing investigation. There has yet to be a timeline for when more information can be provided.”
This development emerges in the wake of a significant security incident that befell Atomic Wallet in June 2023, resulting in the reported loss of a substantial amount of cryptocurrency assets.
Konstantin Gladych, CEO of Atomic Wallet expressed the company’s dedication:
“Atomic Wallet has advocated for decentralisation since its inception, and sharing our findings with the blockchain community, which has been proactively offering its support, will help create a safer web3 space and drive mass crypto adoption. We will continue to invest in security measures and maintain the highest security standards in the industry.”
Marina Khaustova, CEO of Crystal Blockchain added:
“This was not a straightforward case as there was a lot of activity from the threat actor to hide the movement of funds. However, we were pleased that Crystal was able to respond rapidly to label wallets and map the flow. As the threat actor chose to siphon the funds through centralised exchanges that Crystal identified, large sums could be frozen. This case shows how crucial it is to have a rapid response and how real-time data plus expert investigators can stop threat actors in their tracks.”
The firm expressed its gratitude:
“Atomic Wallet extends heartfelt gratitude to the centralised cryptocurrency exchanges collaborating promptly to freeze assets linked to reported transactions. Their swift response and cooperation were pivotal in mitigating the impact of the incident that happened to some users.”