According to Bloomberg, as reported by Foresight News, Phantom is being sued due to the theft of Wiener Doge MEME coins. MEME coin developer Thomas Liam Murphy and other victims stated that a malicious attacker stole and cashed out over $500,000 worth of Wiener Doge digital assets from Murphy's Phantom wallet on January 20 this year. Murphy and 13 of his relatives have filed a lawsuit in the United States District Court for the Southern District of New York.

According to the lawsuit, Murphy's friends and family also purchased Wiener Doge cryptocurrency. They accuse Phantom Technologies Inc. of failing to provide sufficient security protection, exposing users to the risks of malware and cryptocurrency wallet theft.