Malaysia's securities regulator has added Atomic Wallet to its list of prohibited financial firms, citing unauthorized operations. This follows a significant hack in 2023, where over $100 million was stolen from the wallet service provider. Although the regulator did not provide further details, Atomic Wallet has faced multiple lawsuits and joins other banned cryptocurrency firms in Malaysia, including Crypto Trade Malaysia and Best Exchange. Atomic Wallet positions itself as a secure, decentralized wallet that supports numerous digital assets. The hack was reportedly linked to the North Korean hacking group Lazarus, which facilitated the transfer of stolen funds. Following the breach, a U.S. federal judge dismissed a class-action lawsuit against Atomic, citing jurisdiction issues. In late 2023, the company also launched a $1 million bug bounty program to enhance its security. The regulatory landscape for cryptocurrency is tightening, with an increase in hacking incidents reported in 2024, emphasizing the vulnerability of centralized exchanges and Web3 wallets.

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