Crypto wallet platform Phantom is facing legal action after a group of plaintiffs accused the company of negligence and fraud for allowing hackers to steal over $500,000 worth of Wiener Doge memecoins. The lawsuit, filed in New York by attorney and Wiener Doge creator Thomas Liam Murphy alongside 13 others, alleges that Phantom’s security flaw exposed private keys stored in memory, enabling attackers to drain three user wallets without two-factor authentication. The plaintiffs claim Phantom prioritized transaction fees over user safety, leading to the exploit and a significant impact on the value of the Wiener Doge token. They also argue that OKX, which facilitated the token swaps, shares responsibility for the damages due to past involvement in money laundering-related violations. OKX has been named as co-defendant in the case.