US Federal Judge Dismisses Class-Action Lawsuit Against Atomic Wallet A significant victory has been secured by Atomic Wallet, as a US federal judge has dismissed a class-action lawsuit against the company and its key figures. The lawsuit, filed in 2023, accused Atomic Wallet of orchestrating and sponsoring a **$100 million hack** that occurred in June …
US Judge Dismisses Lawsuit Against Atomic Wallet
US Federal Judge Dismisses Class-Action Lawsuit Against Atomic Wallet
A significant victory has been secured by Atomic Wallet, as a US federal judge has dismissed a class-action lawsuit against the company and its key figures. The lawsuit, filed in 2023, accused Atomic Wallet of orchestrating and sponsoring a **$100 million hack** that occurred in June of the same year.
The lawsuit claimed that Atomic Wallet had “conflated its jurisdiction in Colorado by publishing its app for download and through advertising on social media channels including X (previously Twitter)”. Additionally, plaintiff Graham Dickinson argued that he had regular communication with Atomic Wallet’s customer service team from Colorado, which should be sufficient to establish jurisdiction.
However, Judge Philip Brimmer disagreed with the plaintiffs’ claims, stating that there was not enough evidence to suggest that they had established contact between the company and the state of Colorado. As a result, the court’s jurisdiction over the matter was deemed insufficient.
The $100 million hack on Atomic Wallet, a widely used digital asset management app, sent shockwaves throughout the crypto-currency industry, resulting in the loss of millions more. The incident triggered widespread criticism of the security measures in place for Atomic Wallet and called for greater accountability from cryptocurrency exchanges and wallets, leading to the lawsuit against the company.
Among the defendants in the lawsuit were several high-profile Atomic Wallet figures, including investor and designer Ilia Brusov. Although the case has not been dismissed entirely, Judge Brimmer has given plaintiffs 21 days to explain why they believe their allegations should not be dropped. This potentially allows the plaintiffs to re-file or revise their claims, keeping the lawsuit alive.
The implications of this ruling are significant, not only for Atomic Wallet but for the cryptocurrency industry as a whole. Security and accountability concerns are becoming more prevalent in recent years, and it has become increasingly evident that the industry requires more regulation and security measures to safeguard user funds.
For more insights and information on the cryptocurrency industry, read our article on “Cryptocurrency Industry Regulation and Security Measures: What’s Next?”
As the crypto-marketplace responds to these challenges and works to address the concerns of both users and regulators, it will be interesting to see how this plays out in the coming weeks and months. The industry is expected to face many obstacles and setbacks as it matures, but it also presents an opportunity for innovation, growth, and user security.
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