The Estonia-based company, Atomic Wallet, is seeking to dismiss a class action lawsuit in the United States related to a massive $100 million hack. The company argues that the legal claims should have been filed in Estonia, highlighting its lack of connections to the US.
Background of the Lawsuit
In August, plaintiffs launched a class action lawsuit against Atomic Wallet following a significant security breach in June, affecting approximately 5,500 users. This hack, resulting in a loss of $100 million, was reportedly executed by groups from North Korea and Ukraine. The lawsuit was filed in a Colorado District Court, but Atomic Wallet contends that this is not the proper jurisdiction for the case.
Arguments for Dismissal
Atomic Wallet’s dismissal motion, filed on November 16, emphasizes that the company has no substantial ties to the United States. Furthermore, the firm points out that its end-user license agreement clearly states that any litigation against it must be filed in Estonia. Notably, only one plaintiff from the class action is actually based in Colorado, where the lawsuit was filed.
Terms of Service and Legal Merits
The firm also highlighted that the affected users had agreed to its terms of service, which expressly disclaim liability for theft-related losses and limit damages to a maximum of $50 per user. Additionally, Atomic Wallet argued that the plaintiff’s negligence claims lack legal merit, as there was no legal duty established for maintaining the wallet’s security against hacking.
Response to Fraudulent Misrepresentation Allegations
Atomic Wallet has also addressed allegations of fraudulent misrepresentation in the lawsuit, contending that these claims are unfounded.
The court’s decision on this dismissal motion will be pivotal in determining whether the case will proceed in the United States or be redirected to Estonia, as per the company’s request. This case underscores the complex legal challenges emerging in the cryptocurrency industry, particularly involving cross-border legal jurisdictions and cybersecurity.