In an alarming development, cryptocurrencies pilfered from users of the Atomic Wallet are reportedly in transit toward mixers, as per a recent report by Elliptic, the prominent blockchain compliance analytics firm.
Tracking the Illicit Funds to Sinbad.io
The infamous breach, which led to a loss of approximately $35 million, saw the stolen funds funneled towards a crypto mixer known as Sinbad.io, a platform popular among notorious cybercriminal factions such as North Korea’s Lazarus Group. Elliptic’s Investigations Team identified this alarming shift on June 5.
Interestingly, Sinbad.io isn’t new to such illicit activities. Elliptic’s investigation uncovered that the crypto mixer had allegedly been employed previously to obscure over $100 million worth of stolen cryptocurrency assets linked to the Lazarus Group.Â
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! While Elliptic hasn’t specified the amount transferred to Sinbad.io following the Atomic Wallet breach, they noted that the purloined assets were converted into Bitcoin before being made untraceable via the mixer.
Adding another layer of intrigue to the narrative, Elliptic divulged that Sinbad.io is likely a revamped version of Blender.io. The latter platform, known for being extensively used by the Lazarus Group to launder stolen funds, holds the dubious distinction of being the first mixer to fall under the sanctions of the U.S. Treasury Department.
The Impact of the Atomic Wallet Breach
The audacious cyber-attack, executed on June 3, compromised multiple Atomic Wallet user accounts. The estimated loss stands at a staggering $35 million. Nevertheless, Atomic Wallet chose to downplay the event’s severity, maintaining that less than 1% of its monthly active users were affected.
The Atomic Wallet team is committed to recovering the lost funds. Victims are urged to vigilantly monitor illicit transfers and report any suspicious activity to renowned crypto exchanges. This proactive step could potentially halt the culprits from converting their stolen funds.Â
Regrettably, these measures may prove inadequate for many victims in light of the latest findings by Elliptic. As the stolen cryptocurrencies journey through the complex labyrinth of the Sinbad.io mixer, the chances of recovery seem increasingly slim, painting a grim picture for the victims of the Atomic Wallet breach.
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