Phantom Wallet sued following $500K memecoin exploit

Crypto Phantom’s portfolio provider faces a trial after a so -called security defect has enabled the pirates to steal more than $ 500,000 of Wiener Doge Mencoin chips.

The complaint, laid On April 14 in New York by lawyer Thomas Liam Murphy and 13 others, accused Phantom of negligence, fraud and misleading practices. According to the folder, a pirate has acceded to the private key to Murphy in extraction of the extension memory of the Phantom browser, a vulnerability The company would have been aware but would never have been fixed or disclosed.

Once inside, the attacker has drained three ghost portfolios without the need to bypass two factors. The attacker used the integrated Phantom “Switch»Functionality to convert the same stolen to Solana (GROUND) Using the Routing of Smart OKX contracts.

The incident caused Wiener Doge’s prices, a token -based token in Solana created by Murphy, to collapse. The part had reached an assessment of more than a million dollars before the flight, but is now worth less than a hundred per token.

The complainants also allege that Phantom has managed billions of swaps, collected costs and put on significant risks, operating more as an unregistered trading platform than a simple wallet. Due to its presumed involvement in the facilitation of exchanges and its history of money laundering violations, OKX was also appointed co-defender in the case.

Phantom has not yet publicly discussed the accusations. While more and more retail users join the web3 space, this trial highlights serious problems concerning marketing, regulation and safety of cryptocurrency portfolios with integrated trading capacities.

In the past year, Phantom has experienced the fastest growth among web3 portfolios, according to a February report by CoinMarketCap. The portfolio attracted more than 15 million active users, facilitating the exchanges of tokens worth more than $ 20 billion in 2024 only.

Ghost raised Additional $ 150 million to an evaluation of $ 3 billion in a C series in January. In addition, the portfolio recently added support to fast -growing networks like suis (Sui) and the base.