Federal Judge Dismisses Lawsuit Against Atomic Wallet

A U.S. federal judge has dismissed a class-action lawsuit against Atomic Wallet, citing a lack of jurisdiction over the Estonian company.

On September 10, Colorado District Court Judge Philip Brimmer ruled that the plaintiffs failed to establish that the court had authority over Atomic Wallet, its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the firm behind the wallet.

The lawsuit, filed in August 2023, stemmed from a $100 million hack that occurred two months prior.

Judge Brimmer noted that the connections between Atomic Wallet and Colorado were inadequate to justify the court’s jurisdiction. Atomic Wallet had argued that it had no substantial ties to the U.S., with only one plaintiff, Graham Dickinson, residing in Colorado.

The plaintiffs had claimed that Atomic Wallet’s advertisements and app availability in Colorado constituted sufficient jurisdictional grounds.

However, Judge Brimmer concluded that software applications, unlike physical goods, do not inherently establish a connection to a specific state. He allowed the plaintiffs an additional 21 days to justify claims against Ilia Brusov, another shareholder and founder of Evercode Infinite, while dismissing the rest of the suit.