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Atomic Wallet Faces Class Action Lawsuit Following $50M Hack

Atomic Wallet Faces Class Action Lawsuit Following $50M Hack

Atomic Wallet is under fire as a group of investors, including prominent figures from Russia and CIS, file a class action lawsuit against the crypto wallet following a significant hack that resulted in losses. The lawsuit reveals the wallet’s alleged lack of transparency and failure to provide sufficient information to affected users.

Atomic Wallet: Facing Legal Repercussions After Hack

In a notable turn of events, the crypto wallet platform Atomic Wallet is grappling with the aftermath of a major security breach. A group of investors, encompassing individuals of substantial wealth from Russia and the CIS region, has initiated a class action lawsuit against the wallet provider. This lawsuit spotlights the challenges and complexities surrounding security breaches within the cryptocurrency ecosystem.

Securing Crypto Assets Amidst Uncertainty

The lawsuit arises in response to a significant hack that befell Atomic Wallet in June. According to the German news outlet IntelliNews, the investor group, impacted by the breach, is asserting that the wallet provider failed to provide adequate information concerning the hack that led to the loss of their assets.

Allegations of Insufficient Disclosure and Investigation

While news of the security breach emerged on June 4th, the investor group contends that Atomic Wallet has yet to initiate a thorough technical investigation into the incident. Furthermore, the wallet provider allegedly neglected to furnish users with pertinent information about the hack. This lack of transparency and accountability has prompted the legal action.

Navigating Legal Avenues for Redress

The class action lawsuit is coordinated by esteemed German lawyer Max Gutbrod and Boris Feldman, co-founder of Moscow-based law firm Destra Legal. Max Gutbrod has indicated that the investors, collectively, sustained losses amounting to approximately $12 million due to the Atomic Wallet hack.

Pursuit of Accountability and Asset Recovery

Speaking on the matter, Max Gutbrod emphasized the firm’s commitment to advocating for its clients and seeking to recover the lost assets. He affirmed that the class action lawsuit seeks to hold Atomic Wallet accountable for its alleged failure to promptly address and disclose the security breach to its users.

Controversy Surrounding Attribution of the Hack

The hack’s origins appear to be a point of contention. While initial reports suggested involvement from the North Korean hacker group Lazarus, Boris Feldman presents an alternative perspective, suggesting a Ukrainian hacker group as the orchestrators behind the attack.

Magnitude of the Hack: Implications for Atomic Wallet

The consequences of the hack were extensive, with an estimated value of around $50 million drained from the platform. Notably, over 5,500 wallets were compromised, impacting a range of digital assets including Bitcoin (BTC), Ether, Tether USDT, Dogecoin, Litecoin, BNB, and MATIC.

As Atomic Wallet confronts the legal repercussions of this breach, the case underscores the critical importance of security measures, transparent communication, and user protection within the evolving landscape of cryptocurrency storage and management.

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