Atomic Wallet faces lawsuit over $100M crypto hack losses: Report

A gaggle of disgruntled cryptocurrency traders have launched a category motion towards Atomic Pockets, which suffered a significant breach and $100 million in losses in June.

Dozens of high-net value traders from Russia and the Commonwealth of Unbiased States are a part of the category motion towards Atomic Pockets, the German enterprise media company bne IntelliNews reported on Aug. 21.

The lawsuit is being coordinated by German lawyer Max Gutbrod and Boris Feldman, a co-founder of Moscow legaltech agency Destra Authorized.

Gutbrod, former associate of over twenty years at Baker & McKenzie in Moscow, reportedly claimed that the attorneys are representing about 50 shoppers who misplaced a complete of $12 million within the aftermath of Atomic Pockets’s breach two months in the past. He mentioned:

“We’re engaged on recovering the property for our shoppers and we will likely be submitting a category motion towards Atomic Pockets […] They didn’t give our shoppers any details about the hack or go to the police to report it.”

Atomic Pockets, the noncustodial cryptocurrency pockets, suffered an enormous $100 million exploit in mid-June 2023. The breach affected no less than 5,500 crypto accounts on the platform. Crypto analytics companies like Elliptic subsequently linked the heist to the North Korean cybercrime group Lazarus Group, which is believed to be answerable for stealing billions in crypto by way of varied thefts.

Whereas preliminary studies blamed Lazarus for the assault on Atomic Pockets, the brand new claims recommended that there could also be one other offender.

In keeping with Feldman’s allegations, it’s more likely {that a} Ukrainian group had orchestrated the hack. His agency Destra has been engaged on the case with blockchain analytics at Match Techniques, who work on their very own investigation on behalf of the traders.

“They’ve discovered traces of involvement of Ukrainian hacker teams,” Feldman reportedly mentioned.

Associated: Newly found Bitcoin pockets loophole let hackers steal $900Okay — SlowMist

As beforehand reported, Atomic Pockets didn’t make clear what circumstances precisely led to the exploit in June. The agency solely laid out the 4 most “possible” causes, together with a virus on consumer gadgets, an infrastructure breach, a man-in-the-middle assault or malware code injection. Atomic Pockets additionally continued to reiterate that lower than 0.1% of app customers have been affected.

Quickly after going by way of the hack, the cryptocurrency pockets apparently continued working as normal.

Atomic Pockets didn’t instantly reply to a request for remark.

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