PANews reported on April 15 that according to Decrypt, Phantom Technologies was sued on Monday, and its crypto wallet Phantom was accused of having a security vulnerability, resulting in the theft of more than $500,000 worth of Wiener Doge (WIENER) tokens from a developer's account. Court documents show that a cybercriminal hacked into Liam's personal computer and obtained the private key of his Phantom wallet from the working memory of his web browser. The lawsuit stated that the attacker had unrestricted access to all funds in Liam's three interconnected Phantom wallets without bypassing multi-factor authentication.
On April 14, Thomas Liam Murphy, founding partner of crypto law firm Murphy's Law, and 13 other plaintiffs filed a lawsuit in the Southern District of New York. They accused Phantom of claiming to have good security, but design flaws put users at risk of cryptocurrency theft. It is reported that Phantom stores user private keys in "unencrypted browser memory" and is vulnerable to theft by malware. Murphy said that after reporting the theft, Phantom asked him to bear the loss on the grounds of "non-custodial wallet". In addition, criminals also used Phantom's "Swapper" function to exchange a large number of Wiener Doge tokens for Solana (SOL) at a low price, destroying the value of the project. The complaint also pointed out that Phantom lacked the necessary risk control system. The plaintiff demanded at least $3.1 million in compensation, accusing Phantom of operating in violation of regulations and violating the Commodity Exchange Act.
