Phantom Wallet Accused of Security Vulnerabilities Causing $500000 Meme Coins to Be Stolen

According to Decrypt, on Monday, Phantom Technologies was sued for security vulnerabilities in its encrypted wallet Phantom, which resulted in the theft of Wiener Doge (WIENER) tokens worth over $500000 from a developer's account. According to court documents, 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 claims that attackers can access all funds in Liam's three interrelated Phantom wallets without bypassing multiple identity authentication. On April 14th, the crypto law firm Murphy&39; Thirteen plaintiffs, including Thomas Liam Murphy, founding partner of s Law, have filed a lawsuit in the Southern District of New York. They accused Phantom of claiming good security, but its design flaws put users at risk of cryptocurrency theft. It is reported that Phantom stores user private keys in "unencrypted browser memory", which can be easily stolen by malicious software. Murphy claimed that after reporting the theft, Phantom made it bear the losses on its own under the pretext of an "unmanaged wallet". In addition, criminals also used Phantom's "Swapper" feature to exchange a large number of Wiener Doge tokens at low prices for Solana (SOL), destroying the value of the project. The lawsuit also points out that Phantom lacks necessary risk control systems, and the plaintiff demands at least $3.1 million in compensation, accusing Phantom of operating in violation of the Commodity Exchange Act.