How to Protect Your Funds From Crypto Wallet HackingJun 5, 2023
Unfortunately, we should recognize the unavoidable reality of periodic news about hacks of crypto exchanges, cold and hot wallets, custodial centralized and non-custodial decentralized crypto wallets.
Like other in-demand things, cryptocurrency has 420 million users as of 2023. This means that a large number of attackers will not give up trying to illegally take possession of other people's funds.
Cryptocurrency storage and exchange hardware and software, just like any man-made system, cannot be perfect. Hacking any system is a matter of time and effort.
Even a cold wallet can have vulnerabilities.
The developers trying to make the hacking of their products long, hard and expensive enough for the hackers. The main goal of it is to give them an understanding that the costs will exceed the benefits. But this does not guarantee complete protection from hacking.
A security precondition is also an actively developed and updated application. It is more difficult to crack, because with every update the hacker has to start from scratch.
In other words, it is safer to keep your money in wallets, which are actively developing.
Is Arctic Wallet resistant to hacking?
By the example of Arctic Wallet we can say that our developers have taken all the necessary measures to ensure security, namely:
- Arctic Wallet is 100% non-custodial; we don't send any sensitive user data to the internet.
- All private keys are stored on the Arctic Wallet user's device in encrypted form, and appear in RAM only at the moment of signing the transaction.
- Arctic Wallet updates are stored in Microsoft Azure, each update is signed with a certificate, and a series of checks are performed before the update is installed.
- Each Arctic Wallet release is validated several times before shipment and undergoes an internal security audit.
- Arctic Wallet does not use a cloud backend, all interaction with the blockchain is done directly from the user's device.
How to minimize the risks of a crypto wallet hack?
The user in turn can minimize the risks of potential hacking by following the principles of security.
The user can protect his crypto assets in advance in case of such news, using a diversification strategy.
It may be less convenient than "keeping all your eggs in one basket," but in return you get much greater risk control.
How to secure your funds when the news about a wallet being hacked hits?
So you've heard the news about the recent hacking of the wallet you're using. From this moment you should understand that your private keys are compromised and the only way to save your money is to transfer them to another wallet as soon as possible.
It should be mentioned that in this particular case it is not secure to use the old passphrase for the new wallet, as its use will lead to the generation of the identical private keys.
Subsequently, after the wallet developers eliminate the consequences of hacking you may decide to continue using it. In this case you should also change your passphrase and the keys based on it.
The recent Atomic Wallet hack has left many users concerned about the safety of their crypto assets.
This shows that even a wallet with great prestige and millions of users can be a victim of hacking. That's why our recommendations are relevant for all who save their money in crypto.
We suggest you get acquainted with the currently available details of the hack, as well as with the options for saving your crypto assets, while Atomic Wallet is in the process of investigating the hack. By staying informed and proactive, you can ensure the security of your digital funds.
On June 3, the first reports of the Atomic Wallet exploit appeared on social media, causing panic among users. As the situation unfolded, more users reported unauthorized access to their wallets and loss of their crypto assets. This rapid escalation of events highlighted the need for immediate action and investigation.
The Atomic Wallet hack serves as a stark reminder of the potential risks associated with storing crypto assets. By staying informed, considering alternative wallet options, and taking proactive measures to safeguard your digital wealth, you can minimize your vulnerability to future hacks. Remember, the security of your crypto assets is ultimately in your hands.