Atomic Wallet faces lawsuit over $100M crypto hack losses: Report


A gaggle of disgruntled cryptocurrency buyers have launched a category motion towards Atomic Wallet, which suffered a serious breach and $100 million in losses in June.

Dozens of high-net price buyers from Russia and the Commonwealth of Independent States are a part of the category motion towards Atomic Wallet, the German enterprise media company BNE IntelliNews reported on Aug. 21.

The lawsuit is being coordinated by German lawyer Max Gutbrod and Boris Feldman, a co-founder of Moscow legaltech agency Destra Legal.

Gutbrod, former companion of over 20 years at Baker & McKenzie in Moscow, reportedly claimed that the legal professionals are representing about 50 purchasers who misplaced a complete of $12 million within the aftermath of Atomic Wallet’s breach two months in the past. He stated:

“We are working on recovering the assets for our clients and we will be filing a class action against Atomic Wallet […] They didn’t give our clients any information about the hack or go to the police to report it.”

Atomic Wallet, the noncustodial cryptocurrency pockets, suffered a large $100-million exploit in mid-June 2023. The breach affected at least 5,500 crypto accounts on the platform. Crypto analytics corporations similar to Elliptic subsequently linked the heist to the North Korean cybercriminal crew Lazarus Group, which is believed to be liable for stealing billions in crypto by way of numerous thefts.

While preliminary stories blamed Lazarus for the assault on Atomic Wallet, the brand new claims steered that there could also be one other wrongdoer.

According to Feldman’s allegations, it’s more likely {that a} Ukrainian group had orchestrated the hack. His agency, Destra, has been engaged on the case with blockchain analytics at Match Systems, which has been working by itself investigation on behalf of the buyers.

“They have found traces of involvement of Ukrainian hacker groups,” Feldman reportedly stated.

Related: Newly discovered Bitcoin wallet loophole let hackers steal $900K — SlowMist

As beforehand reported, Atomic Wallet didn’t clarify what conditions exactly led to the exploit in June. The agency solely laid out the 4 most “probable” causes, together with a virus on person gadgets, an infrastructure breach, a man-in-the-middle assault or malware code injection. Atomic Wallet additionally continued to reiterate that lower than 0.1% of app customers have been affected.

Soon after going by way of the hack, the cryptocurrency pockets apparently continued working as normal.

Atomic Wallet didn’t instantly reply to a request for remark.

Collect this article as an NFT to protect this second in historical past and present your help for unbiased journalism within the crypto area.

Magazine: Big Questions: Did the NSA create Bitcoin?