Are not you afraid to lose money when using software wallets?

[EnergyFather]

Many of you are likely aware of the Atomic wallet breach that occurred in June 2023, when over 100 million dollars was stolen from its users. Almost a year has passed, but the Atomic developers still haven't revealed what actually happened. May be they don't know at all.

Consider this scenario: imagine an update is pushed to a software wallet with a malicious code. If hackers gain access to the update process or the wallet developer's infrastructure, they could inject malicious code into a seemingly legitimate update. Users who download and install this update could unknowingly expose their wallet's private keys or seed phrases to the attackers which would lead to loss of their funds.

This raises the question: can this happen with any software wallet? Does it mean we can't trust anyone?

[PX-Z]

Consider this scenario: imagine an update is pushed to a software wallet with a malicious code. If hackers gain access to the update process or the wallet developer's infrastructure, they could inject malicious code into a seemingly legitimate update. Users who download and install this update could unknowingly expose their wallet's private keys or seed phrases to the attackers which would lead to loss of their funds.

This raises the question: can this happen with any software wallet? Does it mean we can't trust anyone?

This happened to electrum wallet last year or few months ago. That's the reason i don't update eventually my electrum and other wallet, unless a vulnerable was detected and was announced through their official social media handles, websites and some other news outlets. Other than that, i still do that practice more often.

It's also good to note that atomic wallet is not open source, yet they call themselves as non-custodial wallet and there's no way to tell that it really is. In this case you will need to trust the software that it won't save your private keys on their server. But were here in crypto open source software are the foundation of the tech so better to use it instead of the closed ones. And equip yourself with knowledge on how to do good practice to make transaction, how to secure your device and how to keep yourself safe from any attackers online.