The Estonia-based Atomic Wallet has moved to dismiss a class action lawsuit stemming from a substantial $100 million security breach. The firm’s stance is firm: such disputes belong in Estonia, not the United States. This position was outlined in a November 16 motion in a Colorado District Court, where Atomic Wallet emphasized its absence of U.S. connections, pointing out that their user agreement explicitly calls for any legal action to be pursued in Estonia.
The crux of Atomic Wallet’s argument lies in the details of the user agreement. The company cites a clause that users, including the 5,500 impacted by the cyber heist, agreed to — limiting the firm’s liability for theft-related losses and capping potential damages at $50 per user. This, Atomic Wallet argues, nullifies the negligence claims, asserting that no legal obligation exists requiring them to secure the wallet from cyber-attacks.
Furthermore, Atomic Wallet has rebuffed claims of fraudulent misrepresentation, maintaining that the lawsuit lacks a legal foundation. The company’s legal team pointed out that Colorado courts have historically dismissed similar claims due to the absence of a recognized duty to safeguard against such security breaches.
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The class action, initiated in August following the June incident that affected users worldwide, attributed the hack to cyber groups from North Korea and Ukraine. However, Atomic Wallet’s recent legal filing underscores their intent to challenge the jurisdiction and the very grounds of the lawsuit.
