A Class Action Lawsuit Against Atomic Wallet
A group of 50 Russian customers of the decentralized wallet Atomic Wallet have filed a class action lawsuit against the company after falling victim to a $100 million exploit. The victims have teamed up with a German lawyer and a Moscow firm to recover their lost assets. The victims’ losses total around $12 million, and they accuse Atomic Wallet of failing to provide information about the hack or report it to the police. There is speculation that the North Korean Lazarus Group or Ukrainian hackers may be behind the attack. Blockchain analysis experts have been enlisted to investigate the incident further.
The Rise of Cryptocurrency Usage in Russia and Ukraine
The use of cryptocurrencies has increased significantly in both Russia and Ukraine since the start of the military conflict last year. Many people have left the country and are now using cryptocurrencies to transfer and store funds. This surge in crypto usage may have attracted hackers and led to the exploitation of platforms like Atomic Wallet.
The Lack of Transparency and Customer Complaints
Atomic Wallet faced criticism for its lack of transparency following the hack. The company took two weeks to provide an update on the situation and claimed that less than 0.1% of its clients were affected, a statement that was met with skepticism. Customers who lost significant amounts of digital assets expressed their frustration on social media and demanded compensation from Atomic Wallet.
The Laundering of Stolen Funds
Hackers involved in the Atomic Wallet exploit used the Russian crypto exchange Garantex, which is sanctioned by the US Treasury’s Office of Foreign Assets Control (OFAC), to launder the stolen funds. They also exchanged the assets for USDT using 1INCH. Additionally, the hackers sent millions of stolen XRP tokens to centralized exchanges such as Binance, Huobi, and KuCoin.
Hot Take
The class action lawsuit against Atomic Wallet highlights the risks and vulnerabilities associated with decentralized wallets in the crypto space. It also raises concerns about the lack of transparency and accountability from platforms in the event of a security breach. As the popularity of cryptocurrencies continues to grow, it is crucial for users to be cautious and take necessary precautions to protect their assets.
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