Atomic Wallet Wins Dismissal in $100M Hack Lawsuit

As a seasoned crypto investor with over a decade of experience under my belt, I must admit that this latest ruling against Atomic Wallet has left me somewhat perplexed but also not entirely surprised. The intricate nature of the digital assets world often leaves us navigating through legal gray areas, and this case is no exception.


As a researcher, I’m sharing the news about a recent development in a class-action lawsuit against Atomic Wallet. In simple terms, a U.S. federal judge, Judge Philip Brimmer, has decided not to move forward with the lawsuit due to the lack of jurisdiction over the Estonian cryptocurrency firm. The reasoning behind this decision is that Atomic Wallet and its leadership don’t have a strong enough connection with Colorado, where the lawsuit was filed, for the case to proceed there.

Back in August 2023, I found myself embroiled in a legal dispute, stemming from a devastating $100 million hack that occurred on Atomic Wallet just two months prior. As an investor, I and others like me took issue with the company, particularly its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite – the team responsible for developing the software behind the wallet. We believed they were accountable for this unfortunate incident.

Atomic Wallet Wins Dismissal in $100M Hack Lawsuit

Nevertheless, Judge Brimmer pointed out that Atomic Wallet’s connections to Colorado were tenuous at best. The firm contested having any U.S. affiliations, but just one of the 21 plaintiffs, Graham Dickinson, was a resident of Colorado.

The plaintiffs argued that advertisements for Atomic Wallet appeared in Colorado, it could be downloaded there, and contact had been made with their support team. However, the judge pointed out that due to the nature of software-based products, Atomic Wallet might not always be aware of where its users were situated.

As a crypto investor, I find myself in a situation where I’ve chosen to disregard many of the assertions made, but I’ve granted the plaintiffs a 21-day window to convince me otherwise. The co-founder and shareholder in question, Ilia Brusov, holds a significant stake in Atomic Wallet, which stands at 12.8%. However, it’s worth noting that his influence is balanced by the equal ownership of 12.8% each held by another individual, Sokolov. The CEO, Gladyshev, on the other hand, holds a commanding 74.4% stake in Atomic Wallet. This is the current state of affairs I’m observing within the lawsuit.

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2024-09-11 11:32