A United States Federal judge tossed a 100 million hack lawsuit in favor of Estonian-based Atomic Wallet, and its child software development firm. An order released on Sep. 10 by Colorado district court judge Philip Brimmer dismissed the case against Atomic Wallet, its CEO Konstantin Gladyshev, and the software development firm.
In August 2023, some users who held crypto in Atomic Wallet filed a lawsuit against the Wallet after it fell victim to over $100 million hack.
Based on the provisions of international law, Brimmer said that they could not see enough grounds for construing jurisdiction that would entail Atomic Wallet in Colorado and other individuals implicated in the case.
Atomic Wallet also prayed for the case to be dismissed in November, arguing it operated “outside the United States” while noting that only one of the 21 plaintiffs, Graham Dickinson, was in Colorado where the lawsuit was filed.
The lawsuit had stated that Atomic Wallet’s ads were seen in Colorado on X (formerly Twitter), its mobile application could be downloaded in the state, and Dickinson “had frequent interactions” with the company’s customer support from his home in Colorado.
“The nature of the products at issue here — software applications — makes it even less likely that Atomic Wallet deliberately exploited the Colorado market by making the applications, mnemonic keys, and security updates available to Mr. Dickinson or by sending cash back tokens to him,” Judge wrote in his order.
The judge further added that the crypto is not a tangible asset in which the wallet will know who the holder is and where the user is located.
However, Judge Brimmer granted the Plaintiffs an additional 21 days to file the response on why the case against Ilia Brusov, a founder of Evercode Infinite and a shareholder in Atomic Wallet, should not be dismissed.
As stated in the court order, like Sokolov, Brusov owns 12 percent of Holding’s authorized capital stock. Gladysiev owns the remaining 74% of Atomic Wallet, with AG Holdings owning an 8% stake in the same company. 4%.
