Key dealers
- Phantom Technologies is facing a mood for negligence and violations of legislation after a $ 500,000 notch.
- The violation exposed Fantom as unregistered, with uncertain key storage, leading to enormous losses for the Wiener Dogge investor.
A group of investors under the leadership of lawyer Liam Murphy has aroused a lawsuit against Phantom Technologies and OKX, claiming that serious security deficiencies in Phantom’s popular Crypto wallet led to the theft of over $ 500,000 in digital assets and triggered the collapse of Murphy’s digital asset projects, Wienner.
Archived in the southern district of New York, the complaint Requirements for Phantom falsely advertised his wallet as secure while at the same time he consciously stores users’ decrypted private keys in the browser memory-a design that enabled hackers to empty funds without circumventing two-factor arrangements or security checks.
According to the archive, cyber crime on January 20 used a vulnerability in Phantom’s browser extension, where private keys were uncertainly stored.
The attacker had successfully unauthorized access to Murphy’s Crypto Holdings worth over $ 500,000 and since the holding, which caused a 99% reduction in the value of Vienna Doge.
The solar-based MEME coin, valued at over $ 3 million at its peak, dropped from $ 3.1 per symbol to under $ 0.01, according to the complaint. It is noted that the hacker used Phantom’s built -in “Swapper” tool to convert the stolen symbols to Solana.
“Phantom not only failed to predict cyberattacks – it knew exactly how users were compromised and made a calculated decision to be silenced,” according to the archiving.
“Phantom’s leader knew that the browser’s wallet stored users’ decrypted keys in active memory. They knew that beginners were routinely used by malicious software, Phishing script and villain extensions. They knew that many victims lost significant means,” read the document.
Seven major claims are made against Phantom, including acting as an unregistered trading platform, carelessness in cyber security protection, false advertising and help money laundering through OKX.
“OKX knew that Phantom had not registered his swapper as a SEF with CFTC,” says the archiving.
“OKX’s integration was the direct enforcement of the unauthorized liquidation of Liam’s assets. Without OKX’s routing, pricing and execution services, the cyber prime would not have been able to convert Liam’s $ 500,000 in the Wiener Dogge tokens to Sol with Phantom’s app,” adds it.
Thirteen additional plaintiffs, consisting of Murphy’s friends and family, joined the mood after losing investment in Wiener Doge. The group is looking for damages of $ 3.1 per lost token.
