Atomic Wallet Freed from Class Action Lawsuit Over $100M Hack

US Federal Judge Dismisses Atomic Wallet Class-Action Lawsuit

A US federal judge has dismissed a class-action lawsuit against Atomic Wallet, a crypto firm based in Estonia, citing a lack of jurisdiction. Judge Philip Brimmer of the Colorado district court concluded that there were insufficient grounds for the US court to handle the case.

Background

The lawsuit was filed by a group of users following a $100 million hack in June 2023. The plaintiffs alleged that Atomic Wallet CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the company that developed the wallet software, were responsible for their losses. The hack impacted around 5,500 users, who reportedly lost significant amounts of Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Dogecoin (DOGE).

Dismissal

Atomic Wallet argued that it had "no US ties" and sought to have the case dismissed in November 2023. The plaintiffs countered that the company's app, available for download in Colorado, and its advertisements should establish jurisdiction.

However, Judge Brimmer rejected these arguments, stating that the digital nature of Atomic Wallet did not imply that the company specifically targeted Colorado residents. Despite the dismissal, Judge Brimmer granted the plaintiffs 21 days to strengthen their case.

Stakeholders and Challenges

Ilia Brusov, founder and shareholder of Evercode Infinite, owns a 12.8% stake in Atomic Wallet, while Konstantin Gladyshev holds the remaining 74.4%. Despite the lawsuit dismissal, Atomic Wallet continues to face challenges as users seek to recover their funds and explore other legal options.