Atomic Wallet Seeks Dismissal of $100 Million Lawsuit, Citing Lack of US Ties

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Key takeaways : 

  • Atomic Wallet requests dismissal of a  class action lawsuit in the US for a $100m hacking incident.
  • Atomic wallet contends that its ties to the United States are minimal

In a recent legal development, Atomic Wallet, the non-custodial cryptocurrency wallet, is making headlines as it seeks to dismiss a $100 million lawsuit filed against it in August. 

The company argues that it has “no US ties” and is pushing for the case to be dropped based on its end-user license agreement, which stipulates that all legal actions must be pursued in Estonia, where the company is registered.

The lawsuit was initiated after Atomic Wallet fell victim to a hacking incident in June, allegedly orchestrated by a group of hackers from North Korea and Ukraine. While the Lazarus group is commonly attributed to the attack, there are speculations suggesting the potential involvement of hacking groups from other nations. 

Boris Feldman, co-founder of Destra Legal and representing the plaintiffs in the case, puts forth the belief that a Ukrainian group may be responsible for the attack.

In response to the legal action, the company is now asserting that its limited connection to the United States, coupled with the terms of its user agreement, should exempt it from facing the lawsuit on American soil.

Atomic Wallet’s defense centers around its end-user license agreement, which explicitly mandates that any litigation involving the company must be conducted in Estonia. 

Furthermore, Atomic Wallet stresses that approximately 5,500 users accepted the user agreement, which expressly restricts legal disputes to Estonia and caps damages at $50 per user for losses due to theft.

Atomic Wallet is strongly emphasizing the significance of its user agreement, which has been endorsed by thousands of users and explicitly outlines the jurisdiction for legal disputes. In its defense, the company underscores that the impact of the hacking incident is purportedly limited to a single user in Colorado, thereby challenging the scale of the damages being claimed. 

Additionally, Atomic Wallet highlights a crucial aspect of its user agreement—a liability disclaimer that absolves the company of responsibility for losses due to theft

The company asserts that the plaintiff’s claims lack legal merit, putting forth the argument that there was no established legal duty on Atomic Wallet’s part to maintain and upgrade the security of its platform. This legal stance forms the core of Atomic Wallet’s defense against the $100 million lawsuit filed in the wake of the hacking incident.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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