Atomic Wallet wins dismissal of class suit over $100M hack

[_act_]

If you can remember, the wallet hack was not on just one person's Atomic wallet but on several people Atomic wallet. Atomic wallet is a close source wallet which has not changed anything.

https://cointelegraph.com/news/us-court-dismiss-atomic-wallet-class-suit-lack-jurisdiction

The founder of the wallet can win the case but Atomic wallet is not a good wallet to be recommended.

[hugeblack]

This is another reason to avoid using closed source wallets, as any technical error on their part will be borne by the users, especially since these wallets claim that they do not know the private key and cannot access your coins. Using an open source wallet and ensuring that it has been reviewed by experts is the best option.

[ABCbits]

The founder of the wallet can win the case but Atomic wallet is not a good wallet to be recommended.

I agree, especially when
1. Atomic Wallet team never release detailed report how the hack happened in first place.
2. There are so many wallet out there, where some of them are open source.

[Zed0X]

AW's lawyers must be top tier and paid handsomely. Too bad that the victims cannot continue pursuing the case on US due to jurisdiction. I read that the Police in Estonia had conducted their own investigation on the hack but I have not seen an update yet. I don't know if they are well-equipped to handle this type of cases.

[robelneo]

AW's lawyers must be top tier and paid handsomely. Too bad that the victims cannot continue pursuing the case on US due to jurisdiction. I read that the Police in Estonia had conducted their own investigation on the hack but I have not seen an update yet. I don't know if they are well-equipped to handle this type of cases.

They are not yet off the hook only on the US territory, unfortunately for US users, but they should be held accountable for the losses of their users, Is there a possibility of appeal here as this is injustice done to their US users.

This is another classic example of not using a close sourced wallet, its time that we shutdown down these close sourced wallets, users are at a disadvantages using this type of wallet.

[Z-tight]

The founder of the wallet can win the case but Atomic wallet is not a good wallet to be recommended.

I wouldn't really say they won the case here, the Colorado court simply didn't have any jurisdiction over the case and the plaintiffs were unable to prove that it does. Why aren't they charging them in Estonia, though it will be difficult for the victims to prove that the cause of the losses came from Atomic wallet, since it is a self custodial wallet, but i believe it did since they are closed source.

[Captain Corporate]

While its good for them that they do not have to pay a fine for this, which I am sure would have risks of coming out of peoples wallets actually and just pyramid their way out, its also true that nobody would trust them as long as they know what happened. At this point the only thing they can hope for would be growing at a size where not many people know what happened, but they still make a mistake. Because if they keep getting this story heard over and over again, then eventually people will leave and they will bankrupt all the same, with god knows what happens to peoples money in their wallet.

[joniboini]

Because if they keep getting this story heard over and over again, then eventually people will leave and they will bankrupt all the same, with god knows what happens to peoples money in their wallet.

Sadly some people need to be victims themselves before they realize how terrible it is to use a closed source software with some terrible security records to store their money. That being said, I believe the damage to their reputation is so huge that they might change how they operate if they want to stay in the market. But who knows, they might launch another software with more or less the same code under a new name if they're shameless. I'm sure some Twitter detectives will find out quickly if they do that though.

[bitterguy28]

The founder of the wallet can win the case but Atomic wallet is not a good wallet to be recommended.

the only reason why this lawsuit was dismissed in favor of atomic wallet is because US court does not have enough jurisdiction to prosecute atomic wallet which is an estonian company

in the article shared they are pushing the claim that only one of the victims lives in US and that their services were provided without any consideration to location of their users

it would be unfortunate for the victims of said hack but maybe in another court they will be able to get the justice they are seeking for if possible

[hugeblack]

Sadly some people need to be victims themselves before they realize how terrible it is to use a closed source software with some terrible security records to store their money. That being said, I believe the damage to their reputation is so huge that they might change how they operate if they want to stay in the market. But who knows, they might launch another software with more or less the same code under a new name if they're shameless. I'm sure some Twitter detectives will find out quickly if they do that though.

If the hack is insider they may not do much or they may do much to steal more, in any case you should not trust them and the authorities should monitor their financial flows. There are many alternatives but laziness is what makes investors use these closed source wallets because they support mannny multiple coins and the competition from open source multi-coins wallets is not that big.

[NotATether]

What the fuck?

These guys let their own customers get rug-pulled, refuse the FBI's help, and then turn the courts away?

I agree, especially when
1. Atomic Wallet team never release detailed report how the hack happened in first place.
2. There are so many wallet out there, where some of them are open source.

If it would help to make a list of open-source wallets that can be recommended, I would've already done that, but first of all, other people have already done that, and second, these wallets like Atomic Wallet pay generous amounts of money to get their crap advertised prominently on people's websites, so such a site would not have changed anything anyway.

[Dr.Bitcoin_Strange]

That's why cryoto enthusiast are always advised to use an open source wallet. Close source wallet have caused lot of issues to holders and upon all the issues they caused, they never refund investors their lost fund. Right from time, one of my mentor have always kicked against this atomic wallet and I believe he already knows the risk attach to using the wallet. On the other forum, someone once created a topic regarding how he was trying to withdraw from his atomic wallet and he was told, "insufficient balance" Meanwhile he was seeing his balance.

[ABCbits]

I agree, especially when
1. Atomic Wallet team never release detailed report how the hack happened in first place.
2. There are so many wallet out there, where some of them are open source.

If it would help to make a list of open-source wallets that can be recommended, I would've already done that, but first of all, other people have already done that, and second, these wallets like Atomic Wallet pay generous amounts of money to get their crap advertised prominently on people's websites, so such a site would not have changed anything anyway.

Not only that, some website even falsely claim Atomic Wallet open source citing their GitHub as proof. Beginner would falsely believe that, while in fact Atomic Wallet only use certain open-source library, which everyone else also does.

Is Atomic Wallet safe?

Atomic Wallet is theoretically completely secure, as long as you do everything correctly. It’s open source, which significantly reduces the chances of bugs or hidden vulnerabilities creeping into the programming and critical data like passwords are encrypted and only stored locally on your device.

[NotATether]

Not only that, some website even falsely claim Atomic Wallet open source citing their GitHub as proof. Beginner would falsely believe that, while in fact Atomic Wallet only use certain open-source library, which everyone else also does.

Is Atomic Wallet safe?

Atomic Wallet is theoretically completely secure, as long as you do everything correctly. It’s open source, which significantly reduces the chances of bugs or hidden vulnerabilities creeping into the programming and critical data like passwords are encrypted and only stored locally on your device.

So they just fork a bunch of random projects and then link their own Github profile as "proof" for people expecting to see an open-source repository there?

I see this is a completely different website that is not affiliated with Atomic Wallet, however, so this looks to me as something stemming more out of incompetence and a general ignorane on how open source works than any sort of malicious campaign.

[ABCbits]

--snip--

So they just fork a bunch of random projects and then link their own Github profile as "proof" for people expecting to see an open-source repository there?

Yes. And while their FAQ on https://support.atomicwallet.io/article/184-why-is-atomic-wallet-not-open-source acknowledge they're not open source, they attempt to downplay it and i expect only few people ever read that FAQ.

I see this is a completely different website that is not affiliated with Atomic Wallet, however, so this looks to me as something stemming more out of incompetence and a general ignorane on how open source works than any sort of malicious campaign.

I also don't see indication they're affiliated with Atomic wallet. But my point is beginner would have harder time to know whether a website is affiliated with certain company or competent.