- A federal judge in the U.S. dismissed a class-action lawsuit against Atomic Wallet due to lack of jurisdiction.
- The ruling indicated there wasn’t enough evidence of deliberate targeting in Colorado.
- The plaintiffs have 21 days to support claims against shareholder Ilia Brusov.
In a significant legal win for Atomic Wallet, a federal judge in the United States dismissed a class-action lawsuit against the crypto provider and its associates, citing inadequate jurisdiction.
The lawsuit was initiated in 2023 by a group of users following a staggering $100 million hack incident that emerged in June.
Understanding the Allegations Against Atomic Wallet
The plaintiffs contended that Atomic Wallet’s app was accessible for download in Colorado and that the company promoted its offerings via social media channels like X (previously known as Twitter), which, they claimed, could justify establishing jurisdiction over the firm.
One plaintiff, Graham Dickinson, residing in Colorado, claimed to have frequently interacted with the customer support team of Atomic Wallet from his home in the state.
Ruling on Insufficient Evidence
Judge Philip Brimmer rejected the plaintiffs’ claims, asserting that the digital nature of Atomic Wallet’s products made it improbable that the company intentionally targeted Colorado.
“Considering the characteristics of the products in question — software applications — it is even more unlikely that Atomic Wallet specifically aimed for the Colorado market,” Brimmer stated in his judgment.
The ruling also highlighted a lack of substantial evidence indicating significant contact between Atomic Wallet and the state of Colorado, leading to the denial of the court’s jurisdiction over the company, its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the firm responsible for the wallet’s software.
Nevertheless, while the majority of claims against the defendants were dismissed, the judge permitted the plaintiffs an additional 21 days to substantiate their claims against Ilia Brusov, a shareholder and founder of Evercode Infinite, to avoid dismissals.
This ruling marks a pivotal moment for Atomic Wallet as it faces continuing legal hurdles stemming from the security breach.
The result offers temporary respite for Atomic Wallet as it works through the ramifications of the significant hacking incident.
