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.

READ MORE:

Web3 Professionals Remain Optimistic Despite Regulatory Uncertainty

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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.