A class action has been launched against cryptocurrency wallet Atomic Wallet by a group of disgruntled investors who suffered losses of $100 million in a major breach that occurred in June. The class action includes dozens of high-net worth investors from Russia and the Commonwealth of Independent States, according to German business media agency BNE IntelliNews.
The lawsuit is being coordinated by German lawyer Max Gutbrod and Boris Feldman, co-founder of Moscow legaltech firm Destra Legal. Gutbrod, who was a partner at Baker & McKenzie in Moscow for more than 20 years, stated that the lawyers are representing around 50 clients who lost a total of $12 million as a result of the breach. He also accused Atomic Wallet of failing to provide any information about the hack or report it to the police. Gutbrod added that they are working on recovering the assets for their clients and plan to file a class action against Atomic Wallet.
Atomic Wallet is a noncustodial cryptocurrency wallet that experienced a significant exploit worth $100 million in mid-June. The breach affected over 5,500 crypto accounts on the platform. Crypto analytics firms like Elliptic later connected the attack to the North Korean cybercriminal team Lazarus Group, which is known for stealing billions in cryptocurrency through various thefts. However, the new claims from the investors’ lawyers suggest that a Ukrainian group may have orchestrated the hack.
Boris Feldman revealed that his firm, Destra, has been collaborating with blockchain analytics company Match Systems on the case and that they have found traces of involvement from Ukrainian hacker groups. This contradicts initial reports that blamed Lazarus Group for the breach. It raises questions about the true identity of the hackers responsible for the Atomic Wallet attack.
Atomic Wallet has been criticized for not providing clear information about the circumstances that led to the exploit. The firm listed four “probable” causes, including a virus on user devices, an infrastructure breach, a man-in-the-middle attack, or malware code injection. However, they did not specify which one was responsible or offer additional details. Despite the breach, Atomic Wallet continued to operate normally, stating that less than 0.1% of its users were affected.
At present, Atomic Wallet has not responded to requests for comment regarding the class action lawsuit. The investors are seeking compensation and accountability from the company for the losses they incurred as a result of the breach. The case highlights the risks associated with the storage and management of cryptocurrencies and the need for robust security measures to protect investor assets.
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