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A non-custodial crypto wallet called Atomic Wallet suffered a massive $100 million loss in a hack in mid-June.
The security breach affected at least 5,500 accounts, according to reports.
Now, a group of crypto investors with combined losses exceeding $12 million have banded together to sue the wallet provider.
Who is Suing Atomic Wallet?
The group comprises 50 individuals, including high-net-worth investors from Russia and the Commonwealth of Independent States (CIS).
A German lawyer, Max Gutbrod, and Boris Feldman, the co-founder of Moscow legal-tech company Destra Legal, represent them.
Gutbrod has previously spent over two decades as a partner at Baker & McKenzie in Moscow.
He said,
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.
Investors that make up the group have each invested anywhere from $150,000 to $2 million. As for the attackers, they were believed to be the members of the North Korean Lazarus Group.
However, according to Feldman, it is more likely that the attack came from a group located in Ukraine.
He noted that his company, Destra Legal, is looking into the case alongside Match Systems, a reputable blockchain analytics firm. Feldman added that the investigation has found evidence that Ukrainian hackers are behind the attack.
As for Atomic Wallet’s CEO, Konstantin Gladych, they said that the company is cooperating with several law enforcement agencies, including those from Kazakhstan and Estonia.
These agencies are involved because some of the company’s clients are based in these countries, and the local police requested to be included in the investigation.
What is Known About the Hack?
The total amount stolen exceeds $100 million, and hackers needed to be more picky about which coins they would steal.
They have taken Bitcoin, Ether, Tether, Dogecoin, Litecoin, Binance Coin, and Polygon.
The reasons behind the breach remain unclear, although if Ukrainian hackers were behind the attack, they may have been political.
Atomic Wallet did not disclose any specifics yet, as the investigation is ongoing.
As for how the attack was conducted, Dyma Budorin, the CEO of a blockchain security company, Hacken, believes the attackers may have used some inherent flaws in the wallet’s design to breach its security.
Budorin added that the hack was very vocal, revealing issues with crypto wallets that don’t pay enough attention to building a solid architecture.
Budirin also added that it is possible that the hackers derived keys from the transaction data of the wallet’s users.
However, it is equally likely that they exploited existing vulnerabilities in its infrastructure.
Many have also blamed the wallet for claiming that less than 0.1% of the users were affected, ridiculing the false claim.
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