May 29, 2024
Latest Cryptocurrency News

Crypto Investors Launch Class Action Against Atomic Wallet After $100 Million Breach

A class action has been initiated by a group of dissatisfied cryptocurrency investors against Atomic Wallet, which endured a significant breach resulting in $100 million in losses in June. According to Bne IntelliNews, dozens of high-net-worth investors from Russia and the Commonwealth of Independent States are participating in this class action, as reported on August 21.

German attorney Max Gutbrod and Boris Feldman, co-founder of the Moscow legaltech firm Destra Legal, are spearheading the lawsuit. Gutbrod, formerly a partner at Baker & McKenzie in Moscow for more than two decades, claims they are representing approximately 50 clients who collectively lost $12 million in the aftermath of the Atomic Wallet breach two months ago. 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, a noncustodial cryptocurrency wallet, fell victim to a massive $100 million breach in mid-June 2023, impacting at least 5,500 crypto accounts on the platform. Initially, the attack was attributed to the North Korean cybercrime group Lazarus Group, which is known for stealing billions in crypto through various means, according to crypto analytics firms like Elliptic.

However, recent claims suggest that there might be another perpetrator. According to Feldman’s assertions, it is more plausible that a Ukrainian group was behind the breach. His firm, Destra, has been collaborating on the case with blockchain analytics firm Match Systems, which is conducting its investigation on behalf of the affected investors. Feldman stated:

“They have identified indications of involvement by Ukrainian hacker groups.”

Atomic Wallet did not provide clear details about the specific circumstances that led to the June exploit. The company only listed four “probable” causes, including a virus on users’ devices, an infrastructure breach, a man-in-the-middle attack, or malware code injection. Atomic Wallet also reiterated that less than 0.1% of its app users were affected by the breach.

Despite the hack, the cryptocurrency wallet reportedly continued to operate normally. At the time of this report, Atomic Wallet had not responded to requests for comment.

Image by macrovector on Freepik

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