- A US federal judge dismissed the Atomic Wallet class-action lawsuit due to lack of jurisdiction.
- The judge granted plaintiffs an extra 21 days to strengthen the case.
A federal judge in the United States has dismissed a class-action lawsuit against Atomic Wallet, an Estonian-based crypto firm. Philip Brimmer, a judge in the Colorado district court, agreed, concluding there were insufficient grounds for the U.S. court to handle the case.
Following a $100 million hack in June 2023, a group of users alleged that Atomic Wallet CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the company that developed the wallet software, were liable for their losses. The hack affected approximately 5,500 users, who reportedly lost significant amounts of their cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Dogecoin (DOGE).
In November 2023, Atomic Wallet sought to have the case dismissed, arguing that it had “no US ties.” Moreover, plaintiffs argued that its app, which was available for download in Colorado, along with its advertisements, should have been sufficient to establish jurisdiction.
However, the plaintiff’s arguments were rejected, stating that the digital nature of Atomic Wallet did not imply that the company was targeting the residents of Colorado. Despite the dismissal of the lawsuit, Judge Brimmer gave the plaintiffs 21 days to strengthen their case. Meanwhile, they continue to face challenges as users seek to recover their lost funds and consider other legal avenues.
On the other hand, Ilia Brusov, founder and shareholder of Evercode Infinite, owns a 12.8% stake in Atomic Wallet. Konstantin Gladyshev holds the remaining 74.4%. Although the class-action lawsuit has been dismissed, Atomic Wallet continues to face challenges. Users are still working to reclaim their lost funds and explore additional legal options.
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Source: https://thenewscrypto.com/atomic-wallet-freed-from-class-action-lawsuit-over-100m-hack/