A federal judge in the United States has dismissed a class-action lawsuit against Estonia-based crypto firm Atomic Wallet. Judge Philip Brimmer from the Colorado district court concluded that the U.S. court had insufficient grounds to handle the case.
Case Overview
The lawsuit was filed following a hacking attack in June 2023, in which users lost cryptocurrencies worth $100 million. The affected users alleged that Atomic Wallet's CEO Konstantin Gladyshev, shareholder Pavel Sokolov were liable for their losses. Approximately 5,500 users were affected.
Positions of Plaintiffs and Defendants
Atomic Wallet filed a motion to dismiss the case, arguing that it had 'no US ties.' Plaintiffs argued that the app, which was available for download in Colorado, along with its advertisements, should establish jurisdiction. However, the judge rejected these arguments, stating that the digital nature of Atomic Wallet did not imply targeting Colorado residents.
Next Steps and Comments
Despite the dismissal, Judge Brimmer granted plaintiffs an additional 21 days to strengthen their case. Users continue to face challenges in recovering their lost funds and are considering other legal avenues.
Despite the dismissal of the lawsuit, Atomic Wallet users continue to fight for the return of their funds and explore other legal solutions. The situation remains tense, and the next steps of both parties will be closely monitored.
