Atomic Wallet Faces Class Action Lawsuit Over $100 Million Hack

Atomic Wallet Faces Class Action Lawsuit Over Hack

A group of investors has filed a class action lawsuit against Atomic Wallet, claiming that the company failed to disclose information about a hack that resulted in a $100 million loss. The investors, who are high net worth individuals from Russia and the Commonwealth of Independent States, argue that the company did not share proper information about the incident and failed to report it to the police. German lawyer Max Gutbrod, who is leading the legal team, stated that the firm represents about 50 clients who lost $12 million in the hack. The reasons for the hack have not been clarified, but possible scenarios include a man-in-the-middle assault, a breach of infrastructure, a virus on user hardware, or a malware code.

Key Points:

Atomic Wallet investors file a class action lawsuit over the company’s failure to disclose information about a $100 million hack.
The plaintiffs argue that the company did not share proper information about the incident and did not report it to the police.
The hack affected 0.1% of Atomic Wallet’s users.
Possible scenarios for the hack include a man-in-the-middle assault, a breach of infrastructure, a virus on user hardware, or a malware code.
The lack of clear explanation from the company has led to speculation about other bad actors being involved.

What happened to Atomic Wallet?

In June, Atomic Wallet experienced a hack that resulted in a $100 million loss. The non-custodial cryptocurrency wallet had about 5,500 affected users. The hack has been linked to the North Korean Lazarus Group, although some sources speculate that other bad actors may be involved. Boris Feldman, a lawyer for the plaintiffs, believes that a Ukrainian hacker group was responsible for the attack. The involvement of multiple cross-chain protocols like Thorchain made it difficult to track the perpetrators.

Hot Take:

The class action lawsuit against Atomic Wallet highlights the importance of transparency and accountability in the cryptocurrency industry. Investors have the right to be informed about security incidents and expect companies to take appropriate action. The lack of clear explanation from Atomic Wallet has raised suspicions and further damaged the reputation of the company. This case serves as a reminder for all crypto companies to prioritize cybersecurity and communication with their users.