A security breach in Atomic Wallet has resulted in a lawsuit from angry crypto investors. The breach caused a serious loss of $100 million in June. Atomic Wallet’s reputation is currently under examination due to growing complaints.

Atomic Wallet is a decentralized exchange that provides adequate security measures and an interface suitable for crypto enthusiasts. Atomic Wallet offers services, such as easy swapping of 60 plus crypto assets, Proof-Of-Stake (PoS) assets, and fiat currencies from 18 renowned global marketplaces. It has holdings of more than 500 crypto coins.

Who Is Behind the Law-Suit?

The German business media outlet BNE IntelliNews stated on August 21 that dozens of high-net-worth investors from Russia and the Commonwealth of Independent States are parties to the class action lawsuit against Atomic Wallet.

Max Gutbrod, a lawyer from Germany, and Boris Feldman, a co-founder of the Moscow-based legal-tech company Destra Legal, are in charge of organizing the lawsuit.

According to reports, the attorneys represent roughly 50 clients who lost $12 million due to Atomic Wallet’s hack two months ago. Gutbrod, a former partner at Baker & McKenzie in Moscow for over 20 years, reportedly made this assertion.

He stated: “We are trying to get the assets back for our clients, and we’re going to file a class action against Atomic Wallet. They failed to inform our clients about the hack or disclose it to the police.”

A Security Breach in Atomic Wallet Has Resulted in a Lawsuit from Angry Crypto Investors

Reason Behind the Class Action Law-Suit

Midway through June 2023, a significant $100 million exploit affected Atomic Wallet, a noncustodial cryptocurrency wallet. At least 5,500 cryptocurrency accounts on the network suffered damage from the breach. Later, crypto analytics companies like Elliptic connected the robbery to the North Korean cybercriminal group Lazarus Group, responsible for stealing billions of dollars worth of cryptocurrency through various thefts.

There were specific claims that Lazarus was responsible for the attack on Atomic Wallet. However, further assertions indicated that there might be another offender.

Feldman claims that it is much more plausible that a Ukrainian organization was behind the hack. Match Systems has been investigating on behalf of the investors, and his company, Destra, has been collaborating on the case utilizing blockchain analytics.

Feldman states, “They have found evidence of involvement of Ukrainian hacker groups.”

The company’s alleged negligence caused the legal conflict between Atomic Wallet and the plaintiffs. Plaintiffs claim the business neglected to alert clients to the breach or even contact law enforcement.

Atomic Wallet Unveils Probable Causes

A Security Breach in Atomic Wallet Has Resulted in a Lawsuit from Angry Crypto Investors

Atomic Wallet didn’t specify what circumstances gave rise to the June exploit. Only the four “probable” causes—a virus on user devices, an infrastructure compromise, a man-in-the-middle assault, or malware code injection—were listed by the company. Additionally, Atomic Wallet kept repeating that fewer than 0.1% of app users were damaged.

The crypto wallet ran as usual shortly after the theft, causing a lot of speculation in the crypto community.

In conclusion, considering these disclosures, Atomic Wallet’s future is precarious. The verdict in this lawsuit and the following information might change the crypto platform’s course.