SAN FRANCISCO, June 5, 2025 /PRNewswire/ — A class action lawsuit has been filed in California on behalf of victims who lost tens of thousands, some hundreds of thousands, of dollars in cryptocurrency due to a massive security breach at Atomic Wallet, a widely used crypto storage platform. The suit alleges that Atomic Wallet and its parent companies ignored clear warnings about serious vulnerabilities, putting thousands of users at risk.
The June 2023 hack saw more than $100 million in digital assets stolen by hackers allegedly linked to North Korea. But according to the lawsuit, the real failure lies with Atomic Wallet’s leadership, who were told years in advance that their system was unsafe, yet they did nothing.
“This wasn’t a sophisticated hack. This was a preventable disaster. And Atomic Wallet knew it was coming,” said Kiley Grombacher an attorney for the class. “They were warned by their own security auditors that their product was unsafe. They failed to fix it, failed to warn anyone, and as a result our clients’ life savings are gone.”
The complaint outlines how Atomic Wallet, operated by a global web of companies with ties to Russia, concealed its security problems while marketing itself as a safe and secure option for holding cryptocurrency. A 2021 report from security firm Least Authority concluded that the wallet had fundamental design flaws that left users open to devastating losses. Despite this, Atomic Wallet continued to promote the product without disclosing the risks.
Each of the named plaintiffs in the suit used Atomic Wallet between 2019 and 2023 and suffered major financial losses when their wallets were emptied without warning. Some lost more than $500,000. The suit alleges that Atomic Wallet’s negligence, misrepresentations, and failure to act directly caused these losses.
“This lawsuit is about accountability,” added Ms. Grombacher. “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 lawsuit seeks damages for all U.S. Atomic Wallet users affected by the breach, and calls for greater transparency and consumer protection in the rapidly growing but largely unregulated cryptocurrency space.
The case is Petru Alasu et al. v. Atomic Protocal Systems dba Atomic Wallet, U.S. District Court for the Northern District of California San Francisco Division, Case No. Case 3:25-cv-04684-LB.
SOURCE Bradley/Grombacher
