US Judge Dismisses Class-Action Lawsuit Against Atomic Wallet

According to Cointelegraph, a United States federal judge has dismissed a class-action lawsuit against Atomic Wallet, citing a lack of jurisdiction over the Estonian crypto firm. The decision was made by Colorado district court judge Philip Brimmer on September 10, affecting Atomic Wallet, its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the software development firm behind Atomic Wallet. The lawsuit was filed in August 2023 by a group of users who had stored cryptocurrencies through Atomic Wallet. This legal action followed a $100 million hack that the wallet provider experienced two months earlier. Judge Brimmer ruled that the contact between Atomic Wallet and Colorado was insufficient to establish the court's jurisdiction over the firm and the other defendants named in the suit. In November, Atomic Wallet had moved to dismiss the lawsuit, arguing that it had no ties to the United States and that only one of the 21 plaintiffs, Graham Dickinson, was based in Colorado, where the suit was filed. The plaintiffs had contended that Atomic Wallet's advertisements were visible in Colorado on X, its mobile app could be downloaded in the state, and Dickinson had routinely communicated with Atomic Wallet's customer service representatives from his home in Colorado. Judge Brimmer noted that the nature of Atomic Wallet's products, which are software applications, made it less likely that the firm deliberately targeted the Colorado market. He explained that unlike tangible goods that must be shipped to customers in a specific state, Atomic Wallet's products could reach users without the firm knowing their locations. Despite dismissing the claims, Brimmer allowed the plaintiffs an additional 21 days to explain why a suit against defendant Ilia Brusov, one of the founders of Evercode Infinite and an Atomic Wallet shareholder, should not be dismissed. Brusov owns a 12.8% stake in Atomic Wallet, while Sokolov also holds a 12.8% stake, and Gladyshev owns the remaining 74.4%.