Atomic Wallet blocked $2 million on the balance of a hacker crypto wallet

[Carding 4 Carders]

The provider of the Atomic Wallet crypto wallet reported that as a result of cooperation with blockchain security specialists from Chainalysis and Crystal, it was possible to track and block stolen crypto assets worth more than $2 million.

We are talking about funds that were stolen from the cryptocurrency wallets of Atomic Wallet users during a hacker attack in June 2023. The project team noted that hackers failed to hide the movement of crypto assets, despite the use of sophisticated methods to disguise their source.

Atomic Wallet did not disclose the search method, but noted that hackers used mixers of crypto assets, firewalls, redirection of stolen assets through various decentralized protocols, as well as placing funds on deposits of centralized exchanges.

Earlier, Russian users of Atomic Wallet, together with the legal service DestraLegal and PlainChain analysts, announced the preparation of a class action against the company. Lawyers claim that Atomic Wallet failed to take measures to prevent hacking and theft of assets.

 

[Lord777]

The Estonian company Atomic Systems, the developer of the Atomic Wallet crypto wallet, appealed to the court to reject the claim and reconsider the place of filing the claims.

According to the company's statement, based on the user agreement and the place of incorporation of Atomic Systems, the consideration of a class action related to the theft of $100 million by a hacker should take place in Estonia.

The claim is justified by the fact that the Estonian company "has no ties to the United States", and its end-user license agreement specifies that all legal claims against the company can be filed only at the place of registration.

Atomic Systems also drew the court's attention to the fact that users claims for compensation for cryptoassets allegedly lost due to negligence are not legally binding.

"The user agreement does not provide for legal liability, according to which the crypto firm undertakes to maintain the security of Atomic Wallet and protect it from hacking. Previously, all 5,500 Atomic users allegedly affected by the hack agreed to the terms of service. They waived claims for possible losses due to the theft of crypto assets, and the amount of compensation limits the liability of Atomic Systems to $50 per user," the company said in a statement.

The lawsuit was filed in August, two months after the exploit in Atomic Wallet, which allegedly affected up to 5,500 users. Analysts attribute the incident to North Korean and Ukrainian hacking groups.

 

[Friend]

Colorado Court Dismisses Lawsuit Against Atomic Wallet Crypto Wallet Operators

A district court in Colorado has granted the request of the developers of the Atomic Wallet cryptocurrency wallet to dismiss a class action lawsuit for damages caused by the hacker attack. The court referred to the "lack of personal jurisdiction."

The court explained: Atomic Wallet is an Estonian corporation, and Evercode Infinite, which developed the Atomic Wallet platform and applications, is registered in the United Arab Emirates. Only one of the plaintiffs was a Colorado citizen. The plaintiffs claimed that the Atomic Wallet platform was promoted in Colorado, and local users could download its apps. However, the applicants were unable to provide evidence of minimal contact with users from Colorado, and "unsubstantiated allegations" are not enough, the court decided.

"After downloading the Atomic Wallet app, Mr. Dickinson spoke with Atomic Wallet customer representatives who knew he was a Colorado citizen. But this does not prove that Atomic Wallet intentionally carried out its operations in the state. As for Evercode Infinite, the company did not intend to make Atomic Wallet's software, mnemonic keys, and security updates available to Colorado residents", the court said in its decision.

In June 2023, Atomic Wallet was hacked by North Korean hackers Lazarus Group. About 5500 addresses were affected by the attack, and user losses amounted to more than $100 million. The plaintiffs claimed that the defendants were aware of the vulnerabilities back in April 2021, but did not take precautions to protect customer data and funds.

Last year, Russian users were also going to file a lawsuit against the Atomic Wallet, together with the legal service DestraLegal and PlainChain analysts. Victims claim that Atomic Wallet did not provide the proper level of security for its software.