Atomic Wallet Firm Challenges $100 Million Lawsuit

The corporation denies fraudulent misrepresentation and notes previous court rejections of similar duty-based claims in Colorado.

Atomic Wallet Firm Challenges $100 Million Lawsuit
Atomic Wallet Firm Challenges $100 Million Lawsuit

The corporation accountable for Atomic Wallet has contended that the litigation should have been initiated in Estonia, its country of establishment.

It has petitioned an American magistrate to dismiss a class action lawsuit demanding $100 million in damages for a breach.

In a motion to dismiss lodged on November 16 in a Colorado District Court, the Estonian company argued that it has “no connections to the United States” and that any legal action against it must be conducted in Estonia, its country of headquarters, per its end-user license agreement.

Atomic noted that only one consumer in the state of Colorado was impacted by the incident that was reported.

Additionally, the organization claimed that the 5,500 Atomic users who were allegedly impacted had agreed to its terms of service, which explicitly absolve any responsibility for losses from theft and restrict damages to $50 per user.

Atomic asserts that the plaintiff’s allegations of negligence are devoid of legal validity due to the absence of a legally binding obligation to safeguard Atomic Wallet against hacking and maintain its security.

As stated in the opinion, “similar claims have been consistently rebuffed by this Court because Colorado does not recognize such a duty.”

Furthermore, the Estonia-based wallet provider has denied accusations of fraudulent misrepresentation.

Two months before the August indictment, which was filed by the plaintiffs, an assault on Atomic Wallet occurred, causing an approximate loss of $100 million and impacting 5,500 customers.

Both Ukrainian and North Korean entities have been implicated in the hacking incident.