A lawsuit has been filed against Phantom Technologies and crypto exchange OKX, alleging they played a role in the theft of over $500,000 worth of digital assets. The accusations stem from security breaches that impacted the Solana-based project Wiener Doge, with claims that Phantom’s browser extension design exposed users to cyberattacks. The lawsuit, filed in the Southern District of New York, alleges that Phantom’s wallet storage method allowed hackers to exploit vulnerabilities and drain crypto funds. 13 individuals who invested in Wiener Doge through friends and family are seeking compensation for the lost token value, which dropped by nearly 99% following the attack. The complaint also accuses OKX of actively participating in the illegal liquidation of Murphy’s account, stating that the exchange’s trading infrastructure facilitated the transfer of stolen funds. 28-day gap before addressing security issues with Phantom is cited as proof of disregard for user safety by some cybersecurity experts. Phantom, however, denied these claims. A lack of response from Phantom to security concerns raised by researchers further fueled criticisms. The case highlights the ongoing concerns surrounding crypto exchange security and the potential risks associated with wallet vulnerabilities. 2025’s DeFi landscape.