California Consumers Launch Class Action Against Atomic Wallet Over $100 Million Crypto Theft
On June 5, 2025, a class action lawsuit was officially initiated in California targeting Atomic Wallet, a popular cryptocurrency storage platform. This legal action has been prompted by a significant security breach that resulted in the theft of over $100 million in digital assets. Victims of this breach, many of whom lost tens to hundreds of thousands of dollars, are rallying behind this lawsuit, which claims that Atomic Wallet's management failed to address known vulnerabilities despite various warnings.
The hack, believed to be orchestrated by North Korean hackers, exposed fundamental flaws in Atomic Wallet’s security structure. According to Kiley Grombacher, an attorney representing the plaintiffs, the breach was not the result of a sophisticated attack but rather a preventable catastrophe. Reports from security auditors dating back as early as 2021 had flagged the platform’s potential hazards, indicating that Atomic Wallet’s leadership chose to ignore these alarming assessments. Grombacher stated, "This wasn't a sophisticated hack. This was a preventable disaster. And Atomic Wallet knew it was coming."
The lawsuit alleges that Atomic Wallet, which operates globally and is tied to a network of companies with connections to Russia, deceptively marketed itself as a secure wallet solution while concealing critical security flaws. The plaintiffs, whose wallets were emptied unexpectedly between 2019 and 2023, argue that the company’s negligence, misrepresentation of its services, and failure to act directly caused their financial losses. Some users reported losing more than $500,000, with the totality of losses amounting to hundreds of millions.
Grombacher emphasized the need for accountability in the cryptocurrency sector, stating, "This lawsuit is about accountability. Crypto companies that handle people's money don’t get to hide behind international shell companies and fake names while real families suffer. We intend to hold them responsible."
The complaint not only seeks compensation for those affected but also advocates for increased transparency and consumer protections within the cryptocurrency market, an industry that remains largely unregulated.
The case, titled Petru Alasu et al. versus Atomic Protocol Systems, dba Atomic Wallet, has been filed in the U.S. District Court for the Northern District of California, specifically in the San Francisco Division, under Case No. 325-cv-04684-LB. This legal battle accordingly raises critical questions about the safety and reliability of cryptocurrency management and the responsibilities of firms that offer such services.
As the cryptocurrency landscape continues to evolve, cases like this underscore the importance of consumer protection and ethical practices among digital finance companies. It becomes paramount for companies in this burgeoning industry to ensure robust security measures and transparent communications to protect their users’ assets. The outcome of this lawsuit may set significant precedents for the regulation and governance of cryptocurrency platforms moving forward.
The hack, believed to be orchestrated by North Korean hackers, exposed fundamental flaws in Atomic Wallet’s security structure. According to Kiley Grombacher, an attorney representing the plaintiffs, the breach was not the result of a sophisticated attack but rather a preventable catastrophe. Reports from security auditors dating back as early as 2021 had flagged the platform’s potential hazards, indicating that Atomic Wallet’s leadership chose to ignore these alarming assessments. Grombacher stated, "This wasn't a sophisticated hack. This was a preventable disaster. And Atomic Wallet knew it was coming."
The lawsuit alleges that Atomic Wallet, which operates globally and is tied to a network of companies with connections to Russia, deceptively marketed itself as a secure wallet solution while concealing critical security flaws. The plaintiffs, whose wallets were emptied unexpectedly between 2019 and 2023, argue that the company’s negligence, misrepresentation of its services, and failure to act directly caused their financial losses. Some users reported losing more than $500,000, with the totality of losses amounting to hundreds of millions.
Grombacher emphasized the need for accountability in the cryptocurrency sector, stating, "This lawsuit is about accountability. Crypto companies that handle people's money don’t get to hide behind international shell companies and fake names while real families suffer. We intend to hold them responsible."
The complaint not only seeks compensation for those affected but also advocates for increased transparency and consumer protections within the cryptocurrency market, an industry that remains largely unregulated.
The case, titled Petru Alasu et al. versus Atomic Protocol Systems, dba Atomic Wallet, has been filed in the U.S. District Court for the Northern District of California, specifically in the San Francisco Division, under Case No. 325-cv-04684-LB. This legal battle accordingly raises critical questions about the safety and reliability of cryptocurrency management and the responsibilities of firms that offer such services.
As the cryptocurrency landscape continues to evolve, cases like this underscore the importance of consumer protection and ethical practices among digital finance companies. It becomes paramount for companies in this burgeoning industry to ensure robust security measures and transparent communications to protect their users’ assets. The outcome of this lawsuit may set significant precedents for the regulation and governance of cryptocurrency platforms moving forward.
Topics Financial Services & Investing）
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