Decentralized wallet provider Atomic Wallet is investigating reports from users who believe their wallets have been compromised. 

Around $35 million worth of crypto assets are believed to have been stolen, according to a report from on-chain sleuth ZachXBT. 

The Atomic Wallet team has not confirmed the amount estimated by ZachXBT but said that 1% of monthly active users have been affected via Twitter. The company also said the investigation from the weekend is still ongoing and the support team was collecting victims addresses in an attempt to trace and block stolen funds.

https://twitter.com/AtomicWallet/status/1664946301815910400

Many users have reported losing their entire crypto portfolios. The wallet itself is decentralized and non-custodial, which means that users are responsible for managing their own assets. It remains unclear how the funds were stolen.

Atomic Wallet did not immediately respond to a request for comment from Unchained.

Last year, cybersecurity firm Least Authority disclosed security risks within Atomic Wallet. In a blog post, the company said they had identified vulnerabilities with the wallet’s system design. Atomic’s CEO Konstantin Gladych told Coindesk that it would implement Least Authority’s recommendations by the second quarter of 2022 following the report. This was the first time that Least Authority, since its establishment in 2011, had taken the step to alert the public to unresolved security issues with a client’s product, according to Coindesk.

Founded in 2017, Atomic Wallet is trusted by over 5 million users, according to its website. It allows users to hold more than 1,000 crypto assets as well as participate in staking. 

The exploit comes as the crypto industry experiences an uptick in hacks. Last week, Arbitrum-based Jimbos protocol lost $7.5 million worth of ether due to an exploit. Bug bounty platform Immunefi said that around $440 million had been stolen in the first quarter of this year from 73 incidents. 

ZachXBT is contributing to the investigation of the most recent exploit. In a Twitter thread, he said that the five biggest losses account for $17 million and that the CEO of MEV infrastructure firm Jito Labs had already helped to recover $1 million for one of the victims of the hack.

Atomic Wallet’s token AWC dropped 14% to $0.22 over the past 24 hours, according to data from Coingecko. It’s down 97% from its all-time high in May 2021.