Atomic Wallet sued for losses of $100 million from cryptocurrency hack, according to reports.

A collective of dissatisfied cryptocurrency investors has initiated a class action lawsuit against Atomic Wallet, which experienced a significant breach resulting in $100 million in losses in June.

A number of affluent investors from Russia and the Commonwealth of Independent States are involved in the class action against Atomic Wallet, as reported by the German business media outlet bne IntelliNews on Aug. 21.

The legal action is being organized by German attorney Max Gutbrod and Boris Feldman, a co-founder of the Moscow-based legaltech company Destra Legal.

Gutbrod, who was a partner for over twenty years at Baker & McKenzie in Moscow, reportedly stated that the legal team is representing approximately 50 clients who collectively lost $12 million following the breach at Atomic Wallet two months prior. He mentioned:

“We are working on recovering the assets for our clients and we will be filing a class action against Atomic Wallet […] They didn’t provide our clients with any information regarding the hack or report it to the authorities.”

Atomic Wallet, a noncustodial cryptocurrency wallet, suffered a substantial $100 million exploit in mid-June 2023. The breach impacted at least 5,500 crypto accounts on the platform. Crypto analytics companies such as Elliptic subsequently associated the theft with the North Korean cybercrime organization Lazarus Group, which is thought to be responsible for stealing billions in cryptocurrency through various thefts.

While initial reports attributed the attack on Atomic Wallet to Lazarus, recent claims indicate that there may be another perpetrator.

According to Feldman’s assertions, it is far more probable that a Ukrainian group orchestrated the hack. His firm Destra has been collaborating on the case with blockchain analytics firm Match Systems, which is conducting its own investigation on behalf of the investors.

“They have discovered evidence of involvement from Ukrainian hacker groups,” Feldman reportedly stated.

Related: Newly discovered Bitcoin wallet loophole let hackers steal $900K — SlowMist

As previously noted, Atomic Wallet did not specify the exact conditions that led to the exploit in June. The company only outlined the four most “probable” causes, which included a virus on user devices, an infrastructure breach, a man-in-the-middle attack, or malware code injection. Atomic Wallet also continued to emphasize that less than 0.1% of app users were impacted.

Shortly after the hack, the cryptocurrency wallet reportedly resumed normal operations.

Atomic Wallet did not promptly respond to a request for comment.

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