Investors Sue Atomic Wallet Over $100M Breach, Demand Transparency

crypto wallet showing to suggest resembling with atomic wallet

A group of unhappy cryptocurrency investors has taken legal action against Atomic Wallet, a crypto storage service that suffered a substantial breach resulting in $100 million in losses this past June. 

The lawsuit involves dozens of well-off investors from Russia and other countries in the Commonwealth of Independent States, as reported by the German business media outlet BNE IntelliNews on August 21.

Leading the coordination of this legal effort are German attorney Max Gutbrod and Boris Feldman, a co-founder of the Moscow-based legal technology firm Destra Legal. 

Gutbrod, who has over twenty years of experience with Baker & McKenzie in Moscow, disclosed that the legal team is representing around 50 clients who collectively lost $12 million following the breach that struck Atomic Wallet two months ago. 

Gutbrod emphasized the team's determination to recover assets for their clients and announced their plan to initiate a class-action lawsuit against Atomic Wallet. He expressed concern over the company's lack of communication with clients regarding the breach and its failure to report the incident to authorities.

The breach, impacting over 5,500 cryptocurrency accounts, took place in mid-June of this year. Initially attributed to the North Korean cybercrime group Lazarus Group, recent claims have cast doubt on that narrative, suggesting a possible involvement of a Ukrainian hacker group. 

Feldman's assertions point towards this new perspective, which is backed by the investigative efforts of his firm Destra, working in conjunction with blockchain analytics provider Match Systems.

Atomic Wallet, a non-custodial crypto wallet, has yet to provide a clear explanation of the exact circumstances surrounding the breach. The firm has outlined four potential causes, including a virus affecting user devices, an infrastructure breach, a man-in-the-middle attack, or an injection of malware code. Despite the breach, Atomic Wallet seems to have maintained its operations with minimal disruption.

This class-action lawsuit underscores the mounting demand for accountability and transparency within the cryptocurrency realm. As investors and users look for avenues to address significant security breaches that impact their assets and investments, legal actions like this highlight the necessity for clear guidelines and safeguards within the crypto space.

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