{"id":432476,"date":"2023-08-23T16:55:22","date_gmt":"2023-08-23T16:55:22","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=432476"},"modified":"2023-08-24T03:13:59","modified_gmt":"2023-08-24T03:13:59","slug":"atomic-wallet-faces-a-lawsuit-filed-by-the-victims-of-a-100-million-hack","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/atomic-wallet-faces-a-lawsuit-filed-by-the-victims-of-a-100-million-hack","title":{"rendered":"Atomic Wallet Faces Lawsuit Filed By Victims Of $100 Million Hack"},"content":{"rendered":"

A non-custodial crypto wallet called Atomic Wallet suffered a massive $100 million loss in a hack in mid-June.<\/p>\n

The security breach affected at least 5,500 accounts, according to reports.<\/p>\n

Now, a group of crypto investors<\/a> with combined losses exceeding $12 million have banded together to sue the wallet provider<\/a>.<\/p>\n

Who is Suing Atomic Wallet?<\/h2>\n

The group comprises 50 individuals, including high-net-worth investors from Russia and the Commonwealth of Independent States (CIS).<\/p>\n

A German lawyer, Max Gutbrod, and Boris Feldman, the co-founder of Moscow legal-tech company Destra Legal, represent them.<\/p>\n

Gutbrod has previously spent over two decades as a partner at Baker & McKenzie in Moscow.<\/p>\n

He said,<\/p>\n

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.<\/p><\/blockquote>\n

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<\/a>.<\/p>\n

However, according to Feldman, it is more likely that the attack came from a group located in Ukraine.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

What is Known About the Hack?<\/h2>\n

The total amount stolen exceeds $100 million, and hackers needed to be more picky about which coins they would steal.<\/p>\n

They have taken Bitcoin, Ether, Tether, Dogecoin, Litecoin, Binance Coin, and Polygon.<\/p>\n

The reasons behind the breach remain unclear, although if Ukrainian hackers were behind the attack, they may have been political.<\/p>\n

Atomic Wallet did not disclose any specifics yet, as the investigation is ongoing.<\/p>\n

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.<\/p>\n

Budorin added that the hack was very vocal, revealing issues with crypto wallets that don’t pay enough attention to building a solid architecture.<\/p>\n

Budirin also added that it is possible that the hackers derived keys from the transaction data of the wallet’s users.<\/p>\n

However, it is equally likely that they exploited existing vulnerabilities in its infrastructure.<\/p>\n

Many have also blamed the wallet for claiming<\/a> that less than 0.1% of the users were affected, ridiculing the false claim.<\/p>\n

Related Articles:<\/h3>\n