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Phantom Wallet Faces $3.1M Suit After $500K Meme Coin Theft
A lawsuit has been filed against cryptocurrency wallet provider Phantom for allegedly failing to protect users from a browser vulnerability that enabled hackers to steal approximately $500,000 worth of various meme coins. The complaint, which totals $3.1 million in damages, claims that the company’s design flaws and lack of adequate security measures allowed an attacker to gain unrestricted access to the stolen funds.
According to the lawsuit, which was filed on April 14 in the Southern District of New York, a hacker accessed Liam’s Phantom account and stole his decrypted private key from browser memory. This unauthorized access allowed the attacker to drain all wallet assets without needing to bypass multi-factor authentication or any other security measures.
The lawsuit alleges that Phantom exposed its users to cryptocurrency theft due to these security flaws and design issues. The incident has sparked concerns about the vulnerability of meme coins, which have become increasingly popular in recent years but are often characterized by their volatility and susceptibility to scams.
In related news, Solana-based memecoin platform Pump. Fun has also faced a lawsuit over allegations that it facilitated unregistered securities sales and exploited investors. The incident highlights the need for greater regulation and oversight within the cryptocurrency space, particularly with regards to meme coins and other types of digital assets.
Phantom has not publicly commented on the matter at this time.
Source: https://cryptotale.org/phantom-wallet-faces-3-1m-suit-after-500k-meme-coin-theft/
