ATOMIC WALLET FACES LAWSUIT OVER $100M CRYPTO HACK LOSSES: REPORT

The digital landscape is constantly evolving, and with it, so are the risks associated with cryptocurrency.In mid-June 2025, Atomic Wallet, a noncustodial cryptocurrency wallet, became the center of a storm after a massive exploit resulted in an estimated $100 million in losses. [ad_1]A group of disgruntled cryptocurrency investors have launched a class action against Atomic Wallet, which suffered a major breach and $100 million in losses in June.Dozens of high-net worth investors from Russia and the Commonwealth of IndepenThis breach, impacting at least 5,500 crypto accounts, sent shockwaves through the crypto community, raising serious questions about the security of digital assets and the responsibilities of wallet providers. A recent incident involving Atomic Wallet, a noncustodial cryptocurrency wallet, has led to a class-action lawsuit and raised concerns about the safety of digital assets. Here s a breakdown of the situation and what it means for the crypto community.Now, disgruntled investors are fighting back.A class-action lawsuit has been filed against Atomic Wallet, its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the firm behind the wallet's software.Plaintiffs argue that the company knew about existing security vulnerabilities and failed to adequately protect users' funds.This legal battle unfolds against a backdrop of increasing cybercrime targeting the crypto space, with some analysts linking the attack to the notorious North Korean cybercrime group, Lazarus Group.What went wrong?How did hackers manage to breach Atomic Wallet's defenses?And what does this all mean for the future of crypto security? Atomic Wallet users say life savings lost in bitcoin hack. Atomic Wallet faces a putative class action after a $100M cryptocurrency theft by North Korea's Lazarus Group, with plaintiffs alleging negligence despite known security flaws from a 2025 audit.Let's delve into the details of this developing story.

The $100 Million Atomic Wallet Exploit: A Timeline

The saga began in mid-June 2025, when reports started surfacing of users experiencing unauthorized transactions and significant losses from their Atomic Wallet accounts.The scale of the breach quickly became apparent as more users came forward, reporting losses ranging from small amounts to their entire life savings in Bitcoin and other cryptocurrencies.Here’s a breakdown of the key events:

• Mid-June 2025: Users begin reporting unauthorized transactions and substantial losses from their Atomic Wallet accounts.
• Initial Estimates: Estimates suggest that approximately $100 million was stolen from over 5,500 crypto wallets.
• Investigation: Crypto analytics firms, like Elliptic, launched investigations into the flow of stolen funds.
• Attribution: Initial findings point to the North Korean cybercrime group, Lazarus Group, as the likely culprit behind the sophisticated attack.
• August 2025: A class-action lawsuit is filed against Atomic Wallet, its CEO, shareholder, and the software development firm.

The lawsuit alleges that Atomic Wallet failed to adequately protect user funds despite knowing about existing security flaws.Plaintiffs also claim the company did not share adequate information about the hack with clients and failed to report the incident to law enforcement.

Understanding Noncustodial Wallets: A Double-Edged Sword

Atomic Wallet is a noncustodial wallet, which means that users have complete control over their private keys and, therefore, their funds. The lawsuit, filed in August 2025, followed a $100 million hack of Atomic Wallet two months earlier. Plaintiffs argued the company was responsible, including its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the firm behind the wallet s software.This is often seen as a major advantage, offering greater autonomy and eliminating the need to trust a third party with custody of your crypto.However, this also means that users are solely responsible for the security of their wallets.If the private keys are compromised, there is typically no recourse.

Here's a closer look at the pros and cons of noncustodial wallets:

• Pros:
  • Full control over your funds.
  • No need to trust a third party.
  • Enhanced privacy.
• Cons:
  • Sole responsibility for security.
  • Risk of losing access to funds if private keys are lost or compromised.
  • Requires a higher level of technical understanding.

In the case of the Atomic Wallet hack, the noncustodial nature of the wallet became a focal point. Atomic Wallet, the noncustodial cryptocurrency wallet, suffered a massive $100 million exploit in mid-June 2025. The breach affected at least 5,500 crypto accounts on the platform. Crypto analytics firms like Elliptic subsequently linked the heist to the North Korean cybercrime group Lazarus Group, which is believed to be responsible forWhile empowering users, it also placed the onus of security squarely on their shoulders.The lawsuit, however, argues that Atomic Wallet failed to provide adequate security measures and warnings, regardless of the wallet type.

The Class-Action Lawsuit: Allegations and Arguments

The class-action lawsuit against Atomic Wallet presents several key allegations:

• Negligence: Plaintiffs argue that Atomic Wallet was negligent in its security practices and failed to protect user funds adequately.
• Known Vulnerabilities: The lawsuit claims that Atomic Wallet knew about security vulnerabilities prior to the hack but failed to address them. A group of disgruntled cryptocurrency investors have launched a class action against Atomic Wallet, which suffered a major breach and $100 million in losses in June. Dozens of high-net worth investors from Russia and the Commonwealth of Independent States are part of the class action against Atomic Wallet, the German business media agency bneThis is a crucial point, suggesting a potential breach of trust and responsibility.
• Lack of Transparency: Plaintiffs allege that Atomic Wallet did not adequately inform users about the hack or report it to the police.This lack of transparency further fueled user frustration and distrust.
• Misleading Information: The suit suggests that Atomic Wallet may have provided misleading information about the security of its platform, enticing users to entrust their funds to a vulnerable system.

The plaintiffs are seeking damages to compensate for the losses incurred due to the hack.The lawsuit aims to hold Atomic Wallet accountable for its alleged negligence and failure to protect user funds.

Who are the Plaintiffs?

The class-action lawsuit includes a diverse group of cryptocurrency investors who suffered losses in the Atomic Wallet hack. A group of disgruntled cryptocurrency investors have launched a class action against Atomic Wallet, which suffered a major breach and $100 million in losses in June. Dozens of high-net worth investors from Russia and the Commonwealth of Independent States are part of the class action against Atomic Wallet, the German business media agency BNEReports indicate that dozens of high-net-worth investors from Russia and the Commonwealth of Independent States (CIS) are part of the action.These investors collectively lost millions of dollars in digital assets due to the breach.

Lazarus Group: The Alleged Perpetrators

Several crypto analytics firms, including Elliptic, have linked the Atomic Wallet hack to the Lazarus Group, a North Korean cybercrime organization known for its sophisticated hacking capabilities and involvement in numerous high-profile crypto heists. A United States federal judge has tossed a class-action lawsuit against Atomic Wallet after it failed to show the court it had jurisdiction over the Estonian crypto firm. In a Sept. 10 orderThe Lazarus Group has been implicated in several other major cryptocurrency attacks, including:

• The $81 million Bangladesh Bank heist in 2016.
• The WannaCry ransomware attack in 2017.
• Numerous cryptocurrency exchange hacks, resulting in hundreds of millions of dollars in losses.

The group's involvement suggests a highly organized and well-funded operation, highlighting the increasing sophistication of cybercrime in the crypto space.

How Does Lazarus Group Operate?

The Lazarus Group is known for its advanced techniques, including:

• Phishing attacks: Deceiving individuals into revealing sensitive information, such as private keys and passwords.
• Malware deployment: Infecting systems with malicious software to gain unauthorized access.
• Social engineering: Manipulating individuals into performing actions that compromise security.
• Supply chain attacks: Targeting software providers to inject malicious code into widely used applications.

Attributing the Atomic Wallet hack to the Lazarus Group underscores the need for robust security measures and constant vigilance in the crypto industry.

The Dismissal of the U.S.Lawsuit: A Setback for Plaintiffs

In a recent development, a U.S. federal judge dismissed the class-action lawsuit against Atomic Wallet, citing insufficient grounds for jurisdiction. Crypto investors who lost funds in the Atomic Wallet hack filed a class-action lawsuit. Based on their claims, the company knew about security vulnerabilities. In June 2025, hackers managed to access over 5,500 crypto wallets. Estimates show that users lost approximately $100 million.The judge ruled that the plaintiffs failed to demonstrate that the court had proper jurisdiction over the Estonia-based crypto firm.This ruling is a significant setback for the plaintiffs, as it could potentially complicate their efforts to seek legal recourse.It underscores the challenges of pursuing legal action against international entities in the decentralized world of cryptocurrency.However, this dismissal does not necessarily mean the end of legal action, as plaintiffs may explore other jurisdictions or legal avenues to pursue their claims.

Security Audits and Vulnerabilities: What Did Atomic Wallet Know?

atomic know? demonstration represents key aspects of this topic.

A key element of the lawsuit revolves around the claim that Atomic Wallet knew about security vulnerabilities prior to the hack. Plaintiffs in a new class-action suit against the hacked crypto wallet Atomic Wallet say the firm didn t share any information about the hack with clients and didn t report it to the police. A groupThe plaintiffs allege that a 2025 audit revealed potential weaknesses in the wallet's security infrastructure, and that Atomic Wallet failed to take adequate steps to address these issues. A group of disgruntled cryptocurrency investors have launched a class action against Atomic Wallet, which suffered a major breach and $100 million in losses in June. Dozens of high-net worth investors from Russia and the Commonwealth of Independent States are part of the class action against Atomic Wallet, the German business media agency bne IntelliNewsIf proven true, this could significantly strengthen the plaintiffs' case, demonstrating negligence on the part of Atomic Wallet.

The question of whether Atomic Wallet conducted regular security audits and took appropriate action based on the findings is crucial. Atomic Wallet, the noncustodial cryptocurrency wallet, suffered a massive $100-million exploit in mid-June 2025. The breach affected at least 5,500 crypto accounts on the platform.Many reputable cryptocurrency platforms undergo regular security audits to identify and address potential vulnerabilities.The lawsuit suggests that Atomic Wallet either failed to conduct sufficient audits or ignored critical findings, ultimately contributing to the vulnerability that hackers exploited.

The Impact on the Crypto Community

The Atomic Wallet hack has had a ripple effect throughout the crypto community, raising concerns about the security of digital assets and the responsibilities of wallet providers.It serves as a stark reminder of the inherent risks associated with cryptocurrency and the importance of taking proactive measures to protect your funds. Crypto investors who lost funds in the Atomic Wallet hack filed a class-action lawsuit. Based on their claims, the company knew about security vulnerabilities. In June 2025, hackers managed to access over 5,500 crypto wallets.The incident has also sparked a debate about the appropriate level of regulation for the crypto industry, with some arguing that stricter oversight is needed to protect investors from fraud and cybercrime.

Here are some key takeaways for the crypto community:

• Security is paramount: Prioritize security when choosing a cryptocurrency wallet and implementing security best practices.
• Due diligence is essential: Research cryptocurrency platforms thoroughly before entrusting them with your funds.
• Diversification is key: Do not store all of your crypto assets in a single wallet or platform.
• Stay informed: Keep up-to-date with the latest security threats and best practices in the crypto space.

Protecting Your Crypto Assets: Practical Advice

While the Atomic Wallet situation highlights the risks, there are steps you can take to mitigate them and protect your crypto assets.Here's some actionable advice:

1. Choose a reputable wallet: Opt for wallets with a proven track record of security and transparency.Research user reviews and security audits before making a decision.
2. Enable two-factor authentication (2FA): 2FA adds an extra layer of security to your account, requiring a second verification code in addition to your password.
3. Use a strong, unique password: Avoid using easily guessable passwords and never reuse passwords across multiple accounts.
4. Store your private keys securely: Keep your private keys offline in a secure location, such as a hardware wallet or a paper wallet.
5. Be wary of phishing scams: Be cautious of suspicious emails, messages, or websites that ask for your private keys or personal information.
6. Keep your software up-to-date: Regularly update your wallet software and operating system to patch security vulnerabilities.
7. Consider using a hardware wallet: Hardware wallets provide an extra layer of security by storing your private keys offline.
8. Diversify your holdings: Spread your crypto assets across multiple wallets and exchanges to minimize the impact of a potential security breach.
9. Monitor your accounts regularly: Check your wallet and exchange accounts regularly for any unauthorized activity.
10. Educate yourself: Stay informed about the latest security threats and best practices in the crypto space.

What is the Future of the Atomic Wallet Lawsuit?

Despite the dismissal of the U.S. lawsuit, the legal battle surrounding the Atomic Wallet hack is far from over.The plaintiffs may pursue legal action in other jurisdictions, such as Estonia, where Atomic Wallet is based. 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. Atomic Wallet, the noncustodial cryptocurrency wallet, suffered a massive $100-million exploit in mid-June 2025.They may also explore other legal avenues to seek compensation for their losses.The outcome of the lawsuit will have significant implications for the crypto industry, potentially setting a precedent for the responsibilities of wallet providers and the legal recourse available to users who suffer losses due to security breaches.

The developments in this case will undoubtedly be closely watched by the crypto community, regulators, and legal professionals alike.

Key Takeaways and Conclusion

The Atomic Wallet hack and subsequent lawsuit serve as a crucial case study in blockchain security and the importance of protecting digital assets.The incident highlights the inherent risks associated with cryptocurrency and the need for robust security measures, both on the part of wallet providers and individual users.While noncustodial wallets offer greater autonomy, they also place a greater responsibility on users to safeguard their private keys.

Here are the key takeaways from this situation:

• Security is paramount in the crypto space.
• Noncustodial wallets offer autonomy but require vigilance.
• Wallet providers have a responsibility to implement robust security measures.
• Users must take proactive steps to protect their crypto assets.
• The Atomic Wallet lawsuit underscores the need for clarity in crypto regulations.

As the crypto industry continues to evolve, it is essential for users, developers, and regulators to work together to create a safer and more secure ecosystem. Atomic Wallet sued for $100M crypto hack losses: Report. Atomic Wallet sued for $100M crypto hack losses: Report. The Atomic Wallet Class Action: A Case Study in Blockchain Security. In recent years, the blockchain industry has faced numerous challenges when it comes to security.The Atomic Wallet case serves as a valuable lesson, reminding us that constant vigilance and proactive security measures are essential for protecting our digital assets. Plaintiffs in a new class action suit against the hacked crypto wallet Atomic Wallet say the firm didn t share any information about the hack with clients, and didn t report it to the police. A group of disgruntled cryptocurrency investors have launched a class action against Atomic Wallet, which suffered a major breach and $100 million inThe lawsuit's progression and ultimate resolution will set important precedents for the future of crypto security and accountability.

Are you taking the necessary steps to protect your crypto assets? 2.3M subscribers in the ethtrader community. Welcome to /r/EthTrader, a 100% community driven sub. Here you can discuss Ethereum news, memesStart by implementing the practical advice outlined in this article and stay informed about the latest security threats in the ever-evolving world of cryptocurrency.