After the loss of $100 million due to a substantial security breach, non-custodial decentralised platform Atomic Wallet finds itself entangled in a legal dispute against some affected clients.
The class-action lawsuit, a unified effort by around 50 affected investors, directs its focus on Atomic Wallet's response to the security incident.
The impacted individuals, who collectively lost approximately $12 million, are pursuing compensation for their financial setbacks.
Additionally, they're holding Atomic Wallet accountable for its perceived lack of transparency and responsibility.
The legal battle is spearheaded by Max Gutbrod, a legal expert with an extensive career spanning over two decades, and Boris Feldman, a co-founder of Destra Legal, a Moscow-based legal tech firm.
What Happened to Atomic Wallet?
The cybersecurity turmoil involving Atomic Wallet unfolded in mid-June 2023 when hackers successfully breached the platform.
This breach resulted in substantial losses for users, encompassing various cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Dogecoin (DOGE), among others.
At least 5,500 users felt the impact of this breach, yet detailed information regarding the incident remained elusive.
Atomic Wallet refrained from providing a comprehensive explanation of the breach's circumstances, leaving affected users and the wider crypto community in the dark.
How Did Atomic Wallet Get Hacked?
Atomic Wallet identified four potential causes for the breach, including a virus affecting user devices, an infrastructure breach, a man-in-the-middle attack, or malware code injection.
However, the absence of definitive details raised concerns about the depth of Atomic Wallet's understanding of the breach and its capability to avert similar situations in the future.