Court Dismissal and Jurisdictional Issues: What’s Left For The Atomic Wallet Hack Victims?
Recently, a federal judge in Colorado ruled to dismiss a class-action lawsuit against Atomic Wallet due to jurisdictional challenges. The plaintiffs failed to establish a strong enough connection between the cryptocurrency firm and Colorado to warrant the court’s involvement. The case, stemming from a $100 million hack in June 2023, targeted Atomic Wallet, its CEO, shareholder, and the software development company behind the wallet.
The plaintiffs argued that Atomic Wallet’s presence in Colorado was evident through the availability of its app for download in the state and advertisements on social media platforms. However, Judge Philip Brimmer dismissed these claims, stating that the digital nature of Atomic Wallet’s products did not constitute a deliberate targeting of Colorado residents. The judge emphasized the global accessibility of software products, highlighting that Atomic Wallet's actions did not sufficiently engage with the Colorado market.
Series of Legal Troubles Amid Operational Challenges
The class-action lawsuit was initiated following a $100 million hack that affected thousands of Atomic Wallet users in June 2023. In response, affected users sought legal recourse to hold the company accountable. The legal battle intensified as the plaintiffs aimed to prove Atomic Wallet’s ties to Colorado, but the jurisdictional challenges hindered their efforts in court.
Despite the dismissal of many claims, the judge granted the plaintiffs an extension to strengthen their arguments against Evercode Infinite’s co-founder and shareholder, allowing them one final opportunity to refine their case. While Atomic Wallet secured a legal victory, the company continues to navigate reputational and operational challenges post-breach.
Affected users remain committed to recovering their lost funds, exploring alternative legal avenues for restitution. The dismissal of the lawsuit does not address the broader concerns surrounding the hack or the financial losses endured by Atomic Wallet users. Although the court's decision poses a setback for the plaintiffs, the opportunity to bolster their case against key stakeholders offers a glimmer of hope for potential legal recourse.
