cryptojournalist
Regulatory Action
Malaysia’s Securities Commission has classified Atomic Wallet, a Web3 crypto wallet provider, as unauthorized. The regulator accused the company of operating a digital asset exchange (DAX) without proper registration.
Atomic Wallet joins other barred crypto-related firms in Malaysia, including Crypto Trade Malaysia and Best Exchange. The wallet is marketed as a decentralized and secure platform for staking and swapping over 100 cryptocurrencies.
2023 Hacking Incident
Atomic Wallet faced a major cybersecurity breach in 2023, losing over $100 million in user funds. The Lazarus Group, a North Korean hacking organization, was linked to the attack, with reports suggesting the stolen assets were transferred to Cambodia’s Huione Pay exchange.
The hack led to a class-action lawsuit in the US, but a federal judge dismissed the case, citing jurisdictional issues. In December 2023, Atomic Wallet introduced a $1-million bug bounty to identify vulnerabilities in its software.
Crypto Hacks on the Rise
Cyberattacks on the crypto industry surged in 2024, with $2.2 billion stolen across 303 incidents, up from $1.8 billion in 2023.* Private key thefts accounted for 43.8% of the losses, making them the most significant target.
Centralized exchanges also became prime targets for hackers, reflecting a shift in attack strategies. Cybersecurity expert Jean Rausis noted this trend, emphasizing the increased risks faced by centralized platforms.
