A US federal judge has dismissed a class action lawsuit against the Estonian crypto firm Atomic Wallet, stating that the court lacked sufficient jurisdiction to hear the case.
Background of the Atomic Wallet Lawsuit
A group of users filed the lawsuit against Atomic Wallet in August 2023 after the platform fell victim to a $100 million hack two months earlier. The plaintiffs claimed inadequate security and protection of their cryptocurrencies stored on Atomic Wallet accounts.
Judge Philip Brimmer's Decision
In his September 10 order, Judge Philip Brimmer noted that the contacts between Atomic Wallet and Colorado were insufficient to establish jurisdiction. He stated that the fact that the mobile app could be downloaded in Colorado and the advertisements on X did not provide enough grounds for the court to hear the case. The judge also emphasized that software products, unlike tangible goods, can reach users without knowing their geographical location.
Future of the Case
Despite dismissing claims against the main company and its executives, Judge Brimmer granted the plaintiffs 21 days to provide additional evidence regarding defendant Ilia Brusov. According to the order, Brusov is one of the founders of Evercode Infinite and a shareholder of Atomic Wallet.
The case against Atomic Wallet remains open for at least 21 more days, during which the plaintiffs can attempt to bring new arguments regarding one of the defendants. The situation remains under development and will be closely monitored.
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