- Phantom Wallet is facing a lawsuit from lawyer Thomas Liam Murphy over allegations of negligence and fraud.
- Hackers stole $ 500,000 in Vienna Dogge symbols through a security error in Phantom’s browser wallet.
- The mood claims that Phantom stored users’ private keys in unencrypted browser memory and leaves them vulnerable to attacks.
Crypto Wallet provider Phantom is facing legal problems after a group of investors, under the leadership of lawyer Thomas Liam Murphy, submitted a mood that accused the company of serious security errors. The complaintwhich was submitted on April 14 in New York, claims that a deficiency in Phantom’s browser extension led hackers to steal over $ 500,000 Wiener Doge (Vienna), a Solana-based Memecoin created by Murphy himself.
According to the atmosphere, a hacker gained access to Murphy’s private key by pulling it from the wallet’s unencrypted browser memory – a vulnerability fantasy that allegedly knew about but never fixed or warned users. Once inside, the attacker banned two -factor authentication and drained three Phantom walletsUsing the built -in “Swapper” feature to convert the stolen memecoins to Solana (SoL) via OKX’s smart contract system.
The influence was massive. Wiener Doge, who once scrapped with a market value of $ 1 million, crashed in value after the theft and is now worth less than one penny per symbol. Thirteen other investors – friends and family of Murphy – went with the mood and said they also lost their money.
OKX -INTEGRATION ASSIGNED HAVE enabled rapid replacement of stolen memecoins
What exacerbated the attack, according to the complaint, was the role of Cryptocurrency -Exchange OKX. Phantom had silently integrated OKX’s smart contract that directed into its swapper tool at the end of 2024. This enabled the hacker to immediately replace the stolen memecoins for sun with OKX’s pricing and transaction services.
The mood claims that without OKX’s system, the hacker would not have been able to quickly liquidate the funds. It also points out that OKX had previously admitted to having dealt with $ 5 billion in illegal transactions as part of a federal case of money laundering.
Now Murphy and 13 other plaintiffs – who also lost money in the crash – are looking for $ 3.1 million in damages. Phantom has not yet answered publicly.
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