Malaysia Declares Atomic Wallet Illegal Operation
Date: 2024-12-24 Author: Oliver Abernathy Categories: IN WORLD
Atomic Wallet, a popular Web3 wallet, has been added to the register of prohibited financial institutions due to “operating a digital asset exchange (DAX) without registration,” according to the regulator’s website.
In 2023, Atomic Wallet was at the center of a major cybercrime that resulted in the theft of over $100 million. An analysis by Elliptic indicated that the Lazarus hacking group, which is linked to North Korea, was likely responsible for the attack. The stolen funds were allegedly transferred to Huione Pay, a crypto exchange in Cambodia.
The incident has led to a lawsuit in the United States, where users are seeking compensation for the lost funds. However, a US federal court dismissed the class action lawsuit due to lack of jurisdiction over the Estonian company.
In December 2023, Atomic Wallet announced a $1 million bug bounty program to improve the security of its software.
According to a Chainalysis report published on December 19, 2024, losses from cryptocurrency scams and hacking attacks increased by 21% compared to the previous year. In 2024, attackers stole $2.2 billion in 303 incidents, up from 282 in 2023.
The majority of these losses — 43.8% — occurred due to the compromise of users' private keys. Central crypto exchanges were the most frequent targets.
“In 2024, we saw a significant change in the attack vector in the crypto space, with a noticeable increase in attacks on centralized organizations,” said Jean Rausis, a cybersecurity specialist and co-founder of DeFi ecosystem SmarDex.
Atomic Wallet is one of many cryptocurrency companies banned from operating in Malaysia, along with Crypto Trade Malaysia and Best Exchange.
The company markets itself as a secure, decentralized, and anonymous wallet that supports staking and trading of over 100 digital assets. However, its reputation has suffered due to a loss of user trust and growing scrutiny from regulators.
