US Court Dismisses $100M Atomic Wallet Hack Lawsuit

A federal judge in Colorado has dismissed a class-action lawsuit against Estonian-based Atomic Wallet, citing insufficient grounds for jurisdiction.

The lawsuit, filed by users who lost funds in a $100 million hack in June 2023, aimed to hold the self-custody wallet provider accountable. However, Judge Philip Brimmer ruled that the plaintiffs failed to establish a strong enough connection between Atomic Wallet and Colorado.

The plaintiffs argued that the availability of Atomic Wallet‘s app in Colorado and its ads on social media, along with customer support interactions, proved its ties to the state.

But the judge rejected these claims, stating that digital products can be accessed globally without targeting specific locations. He emphasized that Atomic Wallet’s presence in the state was not deliberate enough to establish jurisdiction.

Atomic Wallet had previously moved to dismiss the case, arguing that it lacked significant connections to the U.S. and that only one of the 21 plaintiffs resided in Colorado. The judge agreed, concluding that the company’s minimal contact with the state did not warrant court involvement.

The lawsuit stemmed from a hack that affected around 5,500 wallets, and users sought to recover lost funds by holding the company and its leaders responsible. While the court’s decision favors Atomic Wallet, the company still faces reputational challenges. Affected users remain determined to reclaim their losses and may pursue other legal options.

Although most claims were dismissed, the judge granted plaintiffs 21 days to strengthen their case against Ilia Brusov, a Atomic Wallet shareholder and Evercode Infinite co-founder, offering a slim chance for further legal action.

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