Atomic Wallet is taking a stand against a class action lawsuit filed in the US related to a substantial hacking event that resulted in losses exceeding $100 million.

Atomic Wallet, an Estonia-based cryptocurrency wallet company The company argues that any potential legal action should be addressed in Estonia, where it was founded and still maintains its headquarters. They filed a motion in the Colorado District Court on November 16, indicating that out of all the plaintiffs involved, only one is actually from Colorado. Atomic Wallet insists that their user agreement, which has been agreed to by around 5,500 users, limits any litigation to Estonian jurisdiction. Moreover, they are claiming that they cannot be held liable for losses incurred through theft, placing a cap on damages at $50 for each user. United States Atomic Wallet is contesting the legitimacy of the negligence claims put forth by the plaintiffs. They argue that they did not hold a legal obligation to secure against hacking incidents, citing the existing legal framework in Colorado that does not impose such expectations.

The allegations of fraudulent misrepresentation in the lawsuit have also been strongly denied by Atomic Wallet. This reaction follows the initiation of the class action suit in August, which surfaced just two months after the hack that impacted approximately 5,500 users. Investigations suggest that groups from North Korea and Ukraine may have orchestrated the attack, culminating in a staggering loss of $100 million. Atomic Wallet The lawsuit targeting Atomic Wallet underscores the intricate issues surrounding jurisdiction and legal accountability within the swiftly evolving and decentralized cryptocurrency landscape. The resolution of this case could have far-reaching implications for how international crypto companies navigate US legal frameworks.

We’re keeping an eye out for the Colorado District Court’s ruling on Atomic Wallet’s dismissal request, as it could significantly shape the regulatory environment for overseas cryptocurrency entities.

This case sheds light on the challenges faced when delineating legal duties in the digital asset sector, particularly when cross-border implications are involved.

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