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Atomic Wallet Seeks Dismissal of $100M Hack Lawsuit, Citing Lack of U.S. Ties

Atomic Wallet, an Estonia-based firm, seeks the dismissal of a class action lawsuit related to a $100 million hack. The company argues it has "no U.S. ties" and emphasizes terms of service disclaimers and limitations on liability.

Estonia-Based Atomic Wallet Requests Dismissal of Class Action Suit

The company behind Atomic Wallet (1), an Estonia-based firm, has filed a motion to dismiss a class action lawsuit seeking damages from a $100 million hack. Atomic Wallet argues that the claims should be filed in Estonia, where the company is based, as it has "no U.S. ties."

Jurisdiction Challenge and Terms of Service

Atomic Wallet's dismissal motion highlights that its end-user license agreement explicitly requires all litigation against the firm to be filed in Estonia. The company contends that the majority of the allegedly affected users are not based in the United States, with only one plaintiff located in Colorado, where the suit was filed.

Disclaimers and Limitations

The Estonia-based firm further asserts that the affected users, totaling 5,500, agreed to its terms of service, which disclaims liability for losses due to theft and limits damages to $50 per user. Atomic Wallet argues that the legal duty to maintain security and protect against hacking was not established, and Colorado law does not recognize such a duty.

Fraudulent Misrepresentation Claims

Claims of fraudulent misrepresentation by the plaintiffs were also challenged by Atomic Wallet, emphasizing that the allegations lack legal merit. The class action was initiated in August, two months after the $100 million exploit on Atomic Wallet, affecting up to 5,500 users.