- Atomic Wallet’s motion to dismiss class action lawsuit over $100M hack rejected by US court, despite Atomic arguing it has no US ties and that suit should be in Estonia.
- Court found Atomic’s arguments lacked merit – US users were impacted, user agreement limiting damages was unconscionable, Atomic had duty to secure wallets based on advertising, and fraud claims were valid.
- Lawsuit against Atomic Wallet over $100M hack will proceed in US court, despite Atomic’s efforts to dismiss the case.
Crypto storage Atomic Wallet recently filed a motion to dismiss a class action lawsuit in the US seeking damages from a $100 million hack. Atomic argued it has no ties to the US and the suit should have been filed in Estonia. However, the US court rejected Atomic’s request to dismiss the case.
Atomic Wallet’s Arguments for Dismissal
Atomic Wallet presented several arguments for dismissing the class action lawsuit. Atomic claimed it has no business connections in the US and its end-user agreement requires all litigation be filed in Estonia, Atomic stated only one user in Colorado was impacted, arguing this was insufficient for a class action. The firm said users agreed to terms limiting liability for theft losses to $50 per user. Atomic argued it had no legal duty to maintain wallet security or prevent hacking.
Court Rejects Motion to Dismiss
Despite Atomic’s claims, the Colorado District Court rejected the motion to dismiss the class action lawsuit for several reasons. While only one Colorado user was named, approximately 5,500 US Atomic wallet users were impacted by the $100 million hack. The court found the terms limiting damages unconscionable and unenforceable. Atomic’s marketing created a duty to keep wallets secure against hacking. The court upheld the plaintiffs’ allegations of fraudulent misrepresentation.
The class action lawsuit against Atomic Wallet will proceed in the US court, despite Atomic’s efforts to have the case dismissed. The court found Atomic’s arguments lacked legal merit. This legal battle stemming from the $100 million hack continues.