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

1 year ago

Plaintiffs successful a caller people enactment suit against the hacked crypto wallet Atomic Wallet accidental the steadfast didn't stock immoderate accusation astir the hack with clients, and didn't study it to the police.

 Report

A radical of disgruntled cryptocurrency investors person launched a people enactment against Atomic Wallet, which suffered a large breach and $100 cardinal successful losses successful June.

Dozens of high-net worthy investors from Russia and the Commonwealth of Independent States are portion of the people enactment against Atomic Wallet, the German concern media bureau bne IntelliNews reported connected Aug. 21.

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

Gutbrod, erstwhile spouse of implicit 2 decades astatine Baker & McKenzie successful Moscow, reportedly claimed that the lawyers are representing astir 50 clients who mislaid a full of $12 cardinal successful the aftermath of Atomic Wallet’s breach 2 months ago. He said:

“We are moving connected recovering the assets for our clients and we volition beryllium filing a people enactment against Atomic Wallet [...] They didn’t springiness our clients immoderate accusation astir the hack oregon spell to the constabulary to study it.”

Atomic Wallet, the noncustodial cryptocurrency wallet, suffered a monolithic $100 cardinal exploit successful mid-June 2023. The breach affected astatine slightest 5,500 crypto accounts connected the platform. Crypto analytics firms similar Elliptic subsequently linked the heist to the North Korean cybercrime radical Lazarus Group, which is believed to beryllium liable for stealing billions successful crypto done assorted thefts.

While archetypal reports blamed Lazarus for the onslaught connected Atomic Wallet, the caller claims suggested that determination whitethorn beryllium different culprit.

According to Feldman’s allegations, it is overmuch much apt that a Ukrainian radical had orchestrated the hack. His steadfast Destra has been moving connected the lawsuit with blockchain analytics astatine Match Systems, who enactment connected their ain probe connected behalf of the investors.

“They person recovered traces of engagement of Ukrainian hacker groups,” Feldman reportedly said.

Related: Newly discovered Bitcoin wallet loophole fto hackers bargain $900K — SlowMist

As antecedently reported, Atomic Wallet didn’t clarify what conditions precisely led to the exploit successful June. The steadfast lone laid retired the 4 astir “probable” causes, including a microorganism connected idiosyncratic devices, an infrastructure breach, a man-in-the-middle onslaught oregon malware codification injection. Atomic Wallet besides continued to reiterate that little than 0.1% of app users were affected.

Soon aft going done the hack, the cryptocurrency wallet seemingly continued operating arsenic usual.

Atomic Wallet did not instantly respond to a petition for comment.

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