A federal court in the United States has dismissed a class-action lawsuit against the Estonian cryptocurrency company Atomic Wallet and its key individuals, citing insufficient evidence of jurisdiction.
Lawsuit Initiation
The lawsuit was initiated in 2023 by users following a $100 million breach in June. The plaintiffs contended that Atomic Wallet had made its application available for download in Colorado and promoted it on platforms such as X, thereby establishing jurisdiction.
Arguments of the Parties
One of the claimants, Graham Dickinson, asserted that he had regularly corresponded with Atomic Wallet's customer service team from his home in the state. However, Judge Philip Brimmer rejected the plaintiffs' assertion, observing that due to the digital nature of Atomic Wallet's products, it was unlikely that the company intentionally targeted the Colorado market.
Court's Decision
Judge Philip Brimmer determined that there was insufficient evidence to demonstrate that Atomic Wallet had substantial contact with the state of Colorado. Consequently, he dismissed the court's jurisdiction over the company, its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the software development firm responsible for the wallet's technology. The verdict represents a significant advancement for Atomic Wallet amidst persistent legal challenges following the breach.
The Colorado court's verdict clears Atomic Wallet and its key individuals of responsibility within the state's jurisdiction, leaving open questions about the breach's further legal implications.
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