Atomic Wallet asks to toss suit over $100M hack, saying it has ‘no US ties’

    2023.11.20 | exchangesranking | 405onlookers

    The company behind Atomic Wallet has asked a United States court to dismiss a class action suit seeking damages from a $100-million hack, arguing the claims should’ve been filed in Estonia, where it’s based.

    In a Nov. 16 dismissal motion in a Colorado District Court, the Estonian firm argued it has “no U.S. ties,” and its end-user license agreement required all litigation against it be filed in its home country of Estonia.

    Atomic pointed out that only one user in Colorado was allegedly affected.

    The firm also claimed the 5,500 allegedly affected Atomic users agreed to its terms of service, which expressly disclaims liability for losses due to theft and limits damages to $50 per user.

    Atomic’s motion to dismiss the class action laid against them. Source: PACER

    Atomic said the plaintiff’s negligence claims also lack legal merit because a legal duty was never created in which they were to maintain Atomic Wallet’s security and protect against hacking.

    Related: Crypto exchange Upbit targeted by hackers 159K times in H1: Report

    “This Court has repeatedly rejected similar claims because Colorado recognizes no such duty,” it wrote.

    Allegations of fraudulent misrepresentation were also struck down by the Estonian-based wallet provider.

    The plaintiffs launched the class action in August, two months after a $100-million exploit on Atomic Wallet took place with up to 5,500 users affected — with both North Korean and Ukrainian groups blamed for the attack.

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