Atomic Wallet recently announced $1 million as a reward for hackers who are able to find security flaws in its legacy software. The digital asset storage services provider made the announcement on 18th December 2023. This announcement has arrived at the time when the firm is facing a class action lawsuit concerning a $100 million hack attack that took place in June.
On this account, the firm has offered $100K to any white hat hackers who are able to locate vulnerabilities that can lead to the draining of wallet reserves.
According to the latest post, the firm has invited ethical hackers and security experts from around the world to locate software bugs and security exploits in the open-source code. On this account, the white hat hackers who are able to locate and report a technical blind spot will receive $1 million as a reward.
This vulnerability should allow the hackers to drain wallet reserves, install malware, use social engineering, and find flaws in the source code. The hackers who report bugs that do not fit this description will receive $500 to $10,000 depending on the damage impact of the vulnerability.
Wallet Security and Bug Bounty Program
Konstantin Gladych recently talked about the bug bounty program noting that it will ensure wallet security in the long run. He further noted that recently DeFi protocols have been subjected to various cybersecurity attacks; therefore, companies intend to stay ahead of the curve by consulting independent contractors from across the globe.
He explained that the team is excited to see how the bug bounty program will contribute to the mission of offering seamless user experience to the firm. Elliptic, a blockchain analytics firm noted in June that around $100 million in cryptocurrencies were stolen from Atomic Wallet account holders.
The theft was result of a hack attack that led to the affected parties launching a class action lawsuit against Atomic Wallet. The plaintiffs are seeking damages recovery resulting from the losses following the hack incident.
They also alleged that firm did not share any information concerning the hack attack with clients and did not file an official police report. A majority portion of the prosecutors are made up of investors from Russia and Commonwealth independent States.
The class action lawsuit is spearheaded by German lawyers Max Gutbrot and Boris Feldman. They have co-founded legal-tech firm Detra Legal in Moscow.
Atomic Wallet Lawyers Apply for Dismissal from Colorado District Court
The defendants in the Atomic Wallet class-action lawsuit have asked for the dismissal of the case citing that it has no ties with the United States. The defense lawyers noted that the lawsuit should be filed in the home nation of Estonia and claimed that 5500 affected investors have agreed to its terms of service.
This registration agreement protects the firm against loss liability on account of theft. Furthermore, the registration contract also limits damage claims to $50 per account holder.
Legal expert Gutbrot noted that he is representing 50 clients with an accumulated loss of $12 million following the hack attack in June. Atomic Wallet is a non-custodial storage facility for virtual currencies. The firm has purported hackers from North Korea and Ukraine as perpetrators for the $100 million exploit.