Atomic Wallet Wins Dismissal in $100M Hack Lawsuit

A U.S. federal judge has dismissed a class-action lawsuit against Atomic Wallet, citing a lack of jurisdiction over the Estonian crypto firm. On Sept. 10, Colorado district court judge Philip Brimmer ruled that the wallet provider and its leadership didn’t have enough connection with Colorado to proceed with the case.

The lawsuit, filed in August 2023 , followed a $100 million hack of Atomic Wallet two months earlier. Plaintiffs argued the company was responsible, including its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the firm behind the wallet’s software.

Source: PACER

However, Judge Brimmer noted that Atomic Wallet’s ties to Colorado were weak. The company argued it had “no U.S. ties,” and only one of the 21 plaintiffs, Graham Dickinson, resided in Colorado.

Plaintiffs claimed that Atomic Wallet’s ads were visible in Colorado on X, the app could be downloaded here, and Dickinson had communicated with their support team. However, the judge emphasized that since the products were software-based, Atomic Wallet couldn’t always know where users were located.

Despite dismissing most of the claims, Brimmer gave the plaintiffs 21 days to argue why Ilia Brusov, a co-founder of Evercode Infinite and shareholder in Atomic Wallet, should not be dismissed from the lawsuit. Brusov and Sokolov each own a 12.8% stake in Atomic Wallet, while CEO Gladyshev holds 74.4%.