Atomic Wallet Demands US Court to Dismiss a $100 Million Hack Class Action
The Estonia-based company behind Atomic Wallet has appealed to a United States court for the dismissal of a class-action suit seeking damages resulting from a notable $100 million hack. The company has put forth the argument that the claims should have been filed in Estonia, the country where it’s headquartered.
Company Argues Claim Placement and Agreement Details
In a Nov. 16 dismissal motion in a Colorado District Court, Atomic Wallet pointed out it has “no U.S. ties”. Moreover, it made clear that its end-user license agreement necessitates all litigation against the company to be instituted in Estonia.
In addition, Atomic’s stance is that the issue impacted only one user in Colorado. Interestingly, the company maintains that the estimated 5,500 potentially affected Atomic users had agreed to its terms of service. This agreement expressly disclaims liability for losses due to potential theft and restricts damages to a ceiling limit of $50 per user.
Firing Back Against Negligence Claims
Atomic’s motion to dismiss the class action alleges that the plaintiff’s negligence claims also lack legal foundation. They insist a legal duty to maintain Atomic Wallet’s security and to protect against hacking was never established. It states: “This Court has repeatedly rejected similar claims because Colorado recognizes no such duty.”
In addition, allegations made by the plaintiffs regarding fraudulent misrepresentation were also strongly refuted by the wallet provider.
Details Regarding the Class Action
The plaintiffs initiated the class action in August. This legal action occurred two months following an alarming $100 million exploit on Atomic Wallet. As a result, up to 5,500 users were reportedly affected.
It’s notable to add that both North Korean and Ukrainian groups were incriminated for the attack. The intriguing question now is: should crypto projects ever engage in negotiations with hackers? Probably. Only time will tell how such complex cybercrime issues will unravel and impact the continually evolving world of cryptocurrency.