North Korean hackers suspected in Atomic Wallet crypto hack

Crypto researchers believe that state-backed hackers from North Korea are responsible for a recent hack on Atomic Wallet, leading to significant financial losses for customers.

Atomic Wallet, an Estonia-based non-custodial decentralized wallet, reported receiving reports of compromised wallets and initiated an investigation into the incident. While Atomic Wallet has not disclosed the exact number of affected users or the extent of the stolen funds, crypto sleuths estimate that hackers made off with around $35 million in various cryptocurrencies.

Experts at blockchain analysis firm Elliptic have linked the attack to the Lazarus Group, a North Korean hacking group known for its involvement in high-profile cybercrimes. Elliptic found similarities between the laundering techniques used in the Atomic Wallet hack and previous attacks attributed to the Lazarus Group.

The stolen assets are being laundered through Sinbad, a crypto mixer that allows the owners to hide the origins of their funds. Sinbad, believed to be a rebrand of the previously sanctioned Blender.io mixer, was previously used by the Lazarus Group to launder stolen cryptocurrency.

Lazarus Group gained a reputation for their involvement in the Ronin Network hack, where they stole $625 million in cryptocurrency, and for stealing $100 million from Harmony Horizon Bridge. Earlier, the U.S. Treasury Department imposed sanctions against Blender.io for its ties to North Korean cyber activity and money laundering.

Atomic said in its latest update that the company "is committed to helping as many victims of the recent exploit as possible" and has teamed up with third parties to help "trace stolen funds and liaise with exchanges and authorities."