Atomic Wallet Freezes $2M in “Suspicious Deposits” on Exchanges

By Evan Spicer
Director of Cryptocurrency Investigations

Atomic Wallet, a popular cryptocurrency wallet app, has announced that it has frozen about $2 million worth of funds that were deposited on various exchanges by its users. The company said that these deposits were flagged as suspicious by its internal security system and that it is investigating the source and nature of the funds.

What is Atomic Wallet? Atomic Wallet is a decentralized, non-custodial, multi-currency wallet that supports over 300 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, and many more. Atomic Wallet allows users to manage their crypto assets in a secure and convenient way, without relying on third-party services or intermediaries. Atomic Wallet also offers features such as atomic swaps, staking, buying, and exchanging crypto within the app.

How can I buy crypto on Atomic Wallet? Atomic Wallet enables users to buy crypto with a credit card or a bank transfer within the app. Users can choose from a variety of fiat currencies and crypto assets to purchase. The process is simple and fast, and the fees are transparent and competitive. Atomic Wallet partners with reputable payment providers such as Simplex, MoonPay, and Indacoin to ensure a smooth and secure transaction.

According to a blog post published by Atomic Wallet on October 25, the company detected a large number of deposits from its users to several exchanges, including Binance, Coinbase, Kraken, and Huobi, in the past week. The total amount of these deposits was about $2 million, mostly in Bitcoin and Ethereum. Atomic Wallet said that it decided to freeze the funds in order to protect its users and the crypto ecosystem from potential fraud or money laundering.

Atomic Wallet explained that its security system monitors the transactions of its users and assigns them a risk score based on various factors, such as the origin, destination, frequency, and amount of the transfers. The company said that it noticed a pattern of unusual deposits from some of its users that raised its suspicion. The company did not disclose the exact criteria or indicators that triggered the alarm, but said that it is working with the exchanges and law enforcement agencies to verify the legitimacy of the funds.

Atomic Wallet apologized to its users for any inconvenience caused by the freeze and assured them that their funds are safe and will be released as soon as possible. The company also urged its users to be careful when sending or receiving crypto assets and to avoid any suspicious or unknown sources. Atomic Wallet said that it is committed to providing a secure and reliable service to its users and that it will update them on the progress of the investigation.