Atomic Wallet is facing a class-action lawsuit after a massive $12 million loss. According to a recent report, disgruntled investors have taken legal action against the cryptocurrency wallet provider. The lawsuit alleges that Atomic Wallet’s negligence led to the financial losses experienced by its users. This news highlights the potential risks associated with cryptocurrency investments and the need for users to exercise caution when choosing a wallet provider.
A group of 50 Russian customers who were affected by a recent $100 million exploit on the non-custodial decentralized wallet, Atomic Wallet, have taken legal action by filing a class action lawsuit against the platform. The victims suspect the involvement of the Lazarus Group, a North Korean hacking group, in the exploit. However, Boris Feldman, who is coordinating the victims’ efforts, believes that Ukrainian hackers might also be responsible.
Efforts to Recover Lost Assets
The affected users of Atomic Wallet have teamed up with German lawyer Max Gutbrod and Boris Feldman, co-founder of Moscow firm Destra Legal, to recover their lost assets. Gutbrod stated that they represent around 50 clients who have lost between $150,000 and $2 million, with a total loss of approximately $12 million.
“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,” Gutbrod stated.
Additionally, Destra Legal has partnered with blockchain analysis experts Match Systems to conduct a separate investigation on behalf of the victims.
Initially, it was believed that the North Korean hacking group was behind the Atomic Wallet exploit, which resulted in the theft of approximately $100 million in digital currencies. However, Feldman suggests the possibility of Ukrainian hackers being involved.
It is worth noting that the use of cryptocurrencies has increased significantly in both Russia and Ukraine since the start of the military conflict in February last year.
“There has been a significant increase in crypto usage since the war. A lot of people left the country and are using cryptocurrencies to transfer and store funds,” Feldman outlined.
The Exploit Controversy
Atomic Wallet, a decentralized crypto wallet with more than five million users, fell victim to cyber criminals in early June this year. Many customers reported compromised accounts, with some claiming to have lost millions worth of digital assets.
Initially, Atomic Wallet was not transparent with its customers, only providing an update two weeks after the attack. The team behind the platform claimed that less than 0.1% of its clients were affected, a statement that was met with skepticism.
One user on Twitter claimed to have lost over 1 BTC due to Atomic Wallet’s faults and demanded the return of his stolen assets.
In the laundering process, the hackers used the services of the Russian crypto exchange Garantex, which is sanctioned by the US Treasury’s Office of Foreign Assets Control (OFAC), to launder the stolen funds. They also exchanged the assets for USDT using 1INCH. Additionally, millions of stolen XRP tokens were sent to centralized exchanges such as Binance, Huobi, and KuCoin.
**Title 1: Atomic Wallet Users Launch Class Action Lawsuit After $100 Million Exploit**
**Title 2: Investigation Underway as Russian Customers Seek Recovery of Lost Assets in Atomic Wallet Hack**
A group of Russian customers who fell victim to a $100 million exploit on the decentralized wallet, Atomic Wallet, have taken legal action by filing a class action lawsuit against the platform. The users suspect the involvement of the Lazarus Group, a North Korean hacking group, in the exploit. However, there are also suspicions of Ukrainian hackers being responsible for the attack.
To recover their lost assets, the affected users have enlisted the help of German lawyer, Max Gutbrod, and Boris Feldman, co-founder of Moscow firm Destra Legal. Around 50 clients, who have collectively lost an estimated $12 million, are being represented in the lawsuit.
Gutbrod stated that the team is actively working on recovering the assets and will also be filing a class action against Atomic Wallet. The platform has been criticized for not providing sufficient information about the hack to their customers or reporting it to law enforcement.
Destra Legal has partnered with blockchain analysis experts Match Systems to conduct a separate investigation on behalf of the victims. The collaboration aims to gather evidence and identify the perpetrators behind the exploit.
While initial suspicions pointed to the involvement of the Lazarus Group, Feldman suggests the possibility of Ukrainian hackers playing a role. The employment of cryptocurrencies has surged in both Russia and Ukraine since the military conflict began, with many individuals using digital assets to transfer and store funds.
Atomic Wallet, with over five million users, suffered the attack in June, resulting in compromised accounts and substantial losses for some customers. The platform faced criticism for its lack of transparency, only providing an update two weeks after the incident. Claims that less than 0.1% of clients were affected were met with skepticism.
As part of the laundering process, the hackers utilized the services of the Russian crypto exchange Garantex, despite it being sanctioned by the US Treasury’s Office of Foreign Assets Control (OFAC). The stolen funds were also exchanged for USDT through 1INCH. Furthermore, the hackers sent millions of stolen XRP tokens to prominent centralized exchanges, including Binance, Huobi, and KuCoin.
The ongoing investigation and legal actions highlight the challenges faced by users and platforms in the rapidly evolving crypto landscape. Cybersecurity threats continue to loom large, emphasizing the importance of robust security measures and proactive measures to safeguard digital assets.