As the crypto industry continues to grow, the number of hacks and other digital exploits has also increased over time. The Atomic Wallet company is no exception, and it has now reportedly urged a U.S. court to dismiss a class action lawsuit seeking compensation for a $100 million hack.
Location is key
The Estonian firm contends that the claims should have been filed in Estonia, its home country, emphasizing its lack of U.S. connections. In a motion for dismissal filed on November 16th, 2023, in a Colorado District Court, Atomic argued that its end-user license agreement mandates litigation to occur in Estonia.
Atomic further pointed out that the approximately 5,500 affected users had agreed to its terms of service, explicitly disclaiming liability for losses resulting via theft and capping damages at $50 per user. Additionally, the company asserted that only one user in Colorado was purportedly impacted.
Not a simple matter
The company challenged the legal merit of negligence claims, asserting that there was no established legal duty for them to maintain the security of Atomic Wallet and protect against hacking. Company representatives also highlighted that similar claims had been rejected by the court previously, as Colorado does not recognize such a duty.
In addition, the Estonian-based wallet provider refuted allegations of fraudulent misrepresentation. The class action was initiated in August, two months after the $100 million exploit on Atomic Wallet took place, impacting around over 5,000 users as previously mentioned. Both North Korean and Ukrainian groups were implicated in the attack, however definitive proof has yet to be unveiled. Atomic Wallet customers are also becoming very impatient thanks to the lack of regular updates.