Phantom Wallet Hit with Lawsuit Over $500K Meme Coin Theft

Phantom Wallet, one of the leading Solana-based crypto wallets, is facing a $3.1 million lawsuit after users allege that a security flaw led to the theft of $500,000 worth of meme coins. The legal action highlights rising concerns around wallet security, especially as meme coin trading and multichain expansion intensify across the Solana ecosystem.

The plaintiffs—a group of affected users—claim Phantom failed to safeguard their wallets against malware-based exploits, allowing hackers to drain funds in a series of rapid, unauthorized transactions. While the stolen assets were primarily meme coins like $TRUMP and $MELANIA, the lawsuit could ripple across the entire crypto wallet space.

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Alleged Flaw Sparks Legal Showdown

According to court documents, hackers exploited a vulnerability in Phantom’s infrastructure, enabling them to gain access and extract funds without user consent. Despite Phantom’s reported $470,000 in daily fee revenue, plaintiffs argue the company did not invest adequately in security infrastructure—a claim that could be damaging for a wallet that rivals even Coinbase Wallet in usage.

Phantom, however, denies these allegations. In a public statement, the team claimed the incident was most likely due to user-side issues, including phishing schemes or infected devices. They pointed to ongoing improvements, including new multichain integrations with Bitcoin and Sui, as proof of their commitment to innovation and user safety.

But critics argue that multichain expansion may have stretched Phantom’s security resources too thin, creating vulnerabilities that savvy cybercriminals are quick to exploit.

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A Pattern of Past Incidents

This isn’t the first time Phantom has come under fire. In February 2025, a wave of phishing attacks—disguised as fake app updates—circulated in the ecosystem, targeting unsuspecting Phantom users. And in late 2024, similar attacks impacted and Coinbase, raising alarms about growing malware sophistication in the crypto space.