The Securities Commission of Malaysia has banned Atomic Wallet, citing unauthorized operations. This decision follows major security issues and legal controversies.
Atomic Wallet Ban
Atomic Wallet, known for its secure and anonymous crypto wallet services, has been blacklisted by the Securities Commission of Malaysia for '[o]perating a digital asset exchange (DAX) without registration.' This comes after the wallet suffered from significant hacking incidents and became involved in legal disputes.
Hacking Incident
In 2023, Atomic Wallet fell victim to a cyberattack resulting in losses exceeding $100 million. Users filed a class action lawsuit against the company in the US, though it was dismissed due to jurisdictional issues. The hack was allegedly linked to the Lazarus Group, which transferred the stolen funds to a Cambodian crypto exchange.
Growing Cyber Threats
In 2024, losses from crypto attacks increased by about 21% compared to the previous year. Hackers targeted centralized exchanges and Web3 wallet private keys. Chainalysis reported that private key compromises accounted for 43.8% of stolen crypto in 2024.
The ban on Atomic Wallet in Malaysia highlights the need for enhanced cybersecurity and regulatory compliance for crypto projects worldwide.
