ATOMIC WALLET WINS DISMISSAL OF CLASS SUIT OVER $100M HACK

Imagine waking up to discover your cryptocurrency wallet has been emptied, a chilling reality for thousands of Atomic Wallet users following a massive $100 million hack in June 2025.The aftermath saw a flurry of legal action, with a class-action lawsuit filed against Atomic Wallet in August 2025, alleging negligence and responsibility for the devastating losses.This legal battle has been closely watched by the crypto community, raising critical questions about the security responsibilities of cryptocurrency wallet providers and the recourse available to users who fall victim to such attacks. The lawsuit, filed in August 2025, followed a $100 million hack of Atomic Wallet two months earlier. Plaintiffs argued the company was responsible, including its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the firm behind the wallet s software.But in a surprising turn of events, Atomic Wallet, an Estonia-based crypto firm, recently secured a significant legal victory.A U.S. federal judge dismissed the class-action lawsuit, offering a respite to the company and stirring debate about jurisdictional boundaries in the decentralized world of cryptocurrency.This article delves into the details of the case, the reasons behind the dismissal, and what it means for the future of crypto security and legal accountability.

The $100 Million Hack and the Class-Action Lawsuit

The story begins with a nightmare scenario for any crypto investor: a massive security breach. Re: Atomic Wallet wins dismissal of class suit over $100M hack Reply 15 on: Today at Quote from: Dr.Bitcoin_Strange on SeptemIn June 2025, Atomic Wallet, a popular non-custodial cryptocurrency wallet, fell victim to a sophisticated cyberattack. If granted, the dismissal would see the case moved to the courts in Estonia, where Atomic is headquartered. The class action was launched in August seeking damages for the estimated 5,500 Atomic Wallet holders who lost coins in the $100 million hack in June. The breach has been attributed to groups from North Korea and Ukraine.The result was catastrophic, with hackers siphoning off an estimated $100 million worth of digital assets from users' accounts.This attack sent shockwaves through the crypto community, raising serious concerns about the security of even well-regarded wallet providers.

In the wake of the hack, a group of affected users, feeling betrayed and financially devastated, decided to take legal action.In August 2025, they filed a class-action lawsuit against Atomic Wallet in a Colorado federal court.The lawsuit named several defendants, including:

• Atomic Wallet: The primary target of the lawsuit, accused of failing to provide adequate security measures to protect users' funds.
• Konstantin Gladyshev: The CEO of Atomic Wallet, held personally accountable for the alleged security lapses.
• Pavel Sokolov: A shareholder in the company, also implicated in the lawsuit.
• Evercode Infinite: The firm responsible for developing the Atomic Wallet software, accused of creating a vulnerable product.

The plaintiffs argued that Atomic Wallet and its associated entities were responsible for the losses incurred due to the hack. In a recent legal victory for Atomic Wallet, a US federal judge has dismissed a class-action lawsuit against the Estonian-based crypto firm and its key figures, citing lack of jurisdiction. The lawsuit was filed in 2025 by a group of users after Atomic Wallet suffered a $100 million hack earlier in June. The allegations against Atomic WalletThey alleged that the company had failed to implement industry-standard security practices, misrepresented the safety of its wallet, and ultimately allowed the attackers to gain access to users' funds. U.S. judge dismisses class-action lawsuit against Atomic Wallet after a $100M hack, citing insufficient ties to Colorado for jurisdiction.The lawsuit sought damages to compensate the victims for their financial losses.

The Court's Decision: Lack of Jurisdiction

Despite the compelling arguments presented by the plaintiffs, the case against Atomic Wallet took an unexpected turn. A federal judge in the United States has dismissed a class-action lawsuit against Atomic Wallet, an Estonian-based crypto firm, citing insufficient grounds for jurisdiction.On September 10, Colorado District Court Judge Philip Brimmer issued an order dismissing the class-action lawsuit.The reason for the dismissal was not based on the merits of the case itself, but rather on a fundamental legal principle: jurisdiction.

In simple terms, jurisdiction refers to the power of a court to hear and decide a case.For a U.S. court to have jurisdiction over a foreign entity like Atomic Wallet, there must be sufficient connections between the company and the state where the court is located.In this case, Judge Brimmer concluded that the plaintiffs had failed to demonstrate that Atomic Wallet had enough ties to Colorado to justify the court's exercise of jurisdiction.

The court considered several factors in reaching this decision, including:

• Atomic Wallet's location: The company is based in Estonia, a country in Northern Europe.
• Business operations: Atomic Wallet's primary business operations are conducted outside of the United States.
• Marketing and sales: While Atomic Wallet's software is available to users worldwide, there was no evidence that the company specifically targeted Colorado residents or conducted significant business activities in the state.

Because Atomic Wallet lacked substantial connections to Colorado, the court ruled that it did not have the authority to hear the case.This decision effectively halted the class-action lawsuit in its tracks.

The Significance of the Dismissal

The dismissal of the class-action lawsuit is a significant victory for Atomic Wallet. A U.S. federal judge has dismissed a class-action lawsuit against Atomic Wallet, citing a lack of jurisdiction over the Estonian crypto firm. On Sept. 10, CIt means that the company will not be held liable for the $100 million hack in a U.S. court, at least for now. Brown Rudnick scored a major victory for Atomic Wallet when a Colorado federal judge dismissed a class action lawsuit alleging that the cryptocurrency wallet company was liable for hackers stealing $100 million worth of digital currency from users accounts.However, the dismissal does not necessarily mean that Atomic Wallet is completely off the hook. Atomic Wallet wins dismissal of class suit over $100M hack cointelegraph.com, UTC cointelegraph.comThe plaintiffs could potentially refile the lawsuit in a different jurisdiction that has stronger ties to the company, such as Estonia. Kalshi election betting contracts multiply after court win. OctoThis would be a complex and potentially expensive undertaking, but it remains a possibility.

More broadly, the case highlights the challenges of regulating and litigating cryptocurrency-related disputes in a globalized world.Cryptocurrency transactions are often borderless, making it difficult to determine which jurisdiction has the authority to hear a case involving a foreign company. A US judge found a Colorado court lacked jurisdiction over the Estonian-based Atomic Wallet, its CEO and a sister software development firm. source:This can create legal uncertainty and make it harder for victims of crypto scams and hacks to seek redress.

Implications for Crypto Users and Wallet Providers

The Atomic Wallet case has several important implications for both cryptocurrency users and wallet providers:

• Security is paramount: The $100 million hack serves as a stark reminder of the importance of security in the cryptocurrency world. A group of disgruntled cryptocurrency investors have launched a class action against Atomic Wallet, which suffered a major breach and $100 million in losses in June. Dozens of high-net worthUsers should take steps to protect their digital assets, such as using strong passwords, enabling two-factor authentication, and being wary of phishing scams.Wallet providers, meanwhile, have a responsibility to implement robust security measures to safeguard their users' funds.
• Know your wallet provider: Before entrusting your cryptocurrency to a wallet provider, do your research. Atomic Wallet wins dismissal of class suit over $100M hack A US judge found a Colorado court lacked jurisdiction over the Estonian-based Atomic Wallet, its CEO and a sister software development firm. Norque NOQ Bitcoin ETH AI Blockchain NORQUE-NOQ (@NorqueNoq) SeptemUnderstand the company's security practices, its legal jurisdiction, and its track record. A federal judge dismissed a class-action lawsuit against Atomic Wallet related to a $100 million hack, citing lack of jurisdiction due to insufficient ties between the Estonian-based company and the state of Colorado.Consider using hardware wallets or other more secure storage options for large amounts of cryptocurrency.
• Legal recourse is complex: If you are the victim of a crypto scam or hack, seeking legal recourse can be challenging.Be prepared to navigate complex legal issues, such as jurisdiction and international law.Consult with an attorney who specializes in cryptocurrency law to understand your options.
• Regulation is evolving: The legal and regulatory landscape for cryptocurrency is constantly evolving. The dismissal, ordered on September 10 by Colorado District Court Judge Philip Brimmer, marked a significant victory for Atomic Wallet and associated defendants amidst allegations stemming from a substantial $100 million hack.Keep abreast of the latest developments to understand your rights and obligations as a crypto user.

The Broader Context: Crypto Hacks and Legal Accountability

The Atomic Wallet hack is just one of many high-profile cryptocurrency security breaches in recent years.Crypto exchanges, wallets, and other platforms have become increasingly attractive targets for hackers, who are constantly developing new and sophisticated methods of attack.These incidents have raised serious questions about the security of the cryptocurrency ecosystem and the need for greater legal accountability.

While the decentralized nature of cryptocurrency makes it difficult to regulate and control, there is growing pressure on governments and regulators to take action.Some countries have already implemented regulations governing cryptocurrency exchanges and wallet providers, while others are considering doing so. The U.S. court recently dismissed the class-action lawsuit against Atomic Wallet due to lack of jurisdiction. Atomic Wallet, a prominent cryptocurrency wallet, had been embroiled in legal turmoil as it faced allegations of fraudulent activities and misrepresentation. The court's decision to dismiss the case has provided some respite to the beleaguered firm and its users. The case was dismissedThese regulations may include requirements for:

• Security audits: Regular audits to ensure that platforms are adhering to industry-standard security practices.
• Insurance: Coverage to protect users in the event of a security breach.
• Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance: Measures to prevent money laundering and other illicit activities.

In addition to government regulation, there is also a growing movement to hold cryptocurrency platforms accountable through private lawsuits.While the Atomic Wallet case demonstrates the challenges of pursuing legal action against foreign companies, it also shows that victims of crypto scams and hacks are not without recourse. Will Google accept any liability here?As the cryptocurrency industry matures, we can expect to see more legal battles over security breaches and other issues.

Understanding Non-Custodial Wallets

Atomic Wallet is a non-custodial wallet, which means users have complete control over their private keys.This is a significant distinction from custodial wallets, where a third party holds the keys.While non-custodial wallets offer greater autonomy, they also place a greater responsibility on the user to protect their own funds.If a user loses their private keys or their device is compromised, they can lose access to their cryptocurrency.

The implications of using a non-custodial wallet in the context of the hack are significant.Atomic Wallet argued that because users controlled their own private keys, they were ultimately responsible for the security of their funds.The plaintiffs, on the other hand, argued that Atomic Wallet had a duty to provide a secure platform and to warn users about the risks of using their wallet.

This debate highlights the tension between user autonomy and platform responsibility in the cryptocurrency world. A United States federal judge has tossed a class-action lawsuit against Atomic Wallet after it failed to show the court it had jurisdiction over the Estonian crypto firm.In a Sept. 10 order, Colorado district court judge Philip Brimmer dismissed claims against Atomic Wallet, its CEO Konstantin GladWhile users value the control that non-custodial wallets offer, they also expect wallet providers to take reasonable steps to protect their funds from theft and loss.

Tips for Securing Your Non-Custodial Wallet

If you use a non-custodial wallet, here are some essential steps you can take to protect your cryptocurrency:

1. Use a strong password: Choose a password that is at least 12 characters long and includes a mix of uppercase and lowercase letters, numbers, and symbols.
2. Enable two-factor authentication (2FA): 2FA adds an extra layer of security by requiring you to enter a code from your phone or another device in addition to your password.
3. Back up your private keys: Store your private keys in a safe place, such as a hardware wallet or a secure offline storage device.
4. Be wary of phishing scams: Phishing scams are designed to trick you into giving away your private keys or other sensitive information. A United States federal judge has tossed a class-action lawsuit against Atomic Wallet after it failed to show the court it had jurisdiction over the EstoniaBe cautious of emails, messages, or websites that ask for your personal information.
5. Keep your software up to date: Make sure you are using the latest version of your wallet software and operating system.Updates often include security patches that protect you from known vulnerabilities.

The Future of Crypto Security and Legal Accountability

The Atomic Wallet case serves as a wake-up call for the cryptocurrency industry.It highlights the need for greater security measures, clearer legal frameworks, and a more robust approach to protecting users from scams and hacks. A federal judge in the United States has dismissed a class-action lawsuit against Atomic Wallet, an Estonian-based crypto firm. Philip Brimmer, a judge in the Colorado district court, agreed, concluding there were insufficient grounds for the U.S. court to handle the case.As the industry continues to grow and evolve, it is essential that all stakeholders – including wallet providers, regulators, and users – work together to create a safer and more secure ecosystem.

Several key trends are likely to shape the future of crypto security and legal accountability:

• Increased regulation: Governments and regulators are likely to implement more comprehensive regulations governing cryptocurrency exchanges and wallet providers.
• Improved security technologies: New technologies, such as multi-party computation (MPC) and hardware security modules (HSMs), are emerging to enhance the security of cryptocurrency wallets and exchanges.
• More sophisticated legal strategies: Lawyers are developing more sophisticated legal strategies to pursue cases against cryptocurrency platforms and individuals involved in scams and hacks.
• Greater user awareness: As users become more aware of the risks associated with cryptocurrency, they are likely to demand greater security and transparency from wallet providers.

Could Atomic Wallet Face Legal Action Elsewhere?

While the Colorado court dismissed the case due to lack of jurisdiction, the plaintiffs could potentially pursue legal action against Atomic Wallet in another jurisdiction. Brown Rudnick Wins Dismissal of Class Action Suit Against Atomic Wallet Over $100M Hack (Octo) Firm Defends Mark Cuban and Mavs in Voyager Digital Lawsuit (Ap)One possibility is Estonia, where Atomic Wallet is based.However, pursuing a lawsuit in a foreign country can be complex and expensive. A group of users who had custodied cryptocurrencies through Atomic Wallet filed the lawsuit in August 2025 after the wallet provider fell victim to a $100 million hack two months earlier.It would require the plaintiffs to navigate the Estonian legal system, which may be unfamiliar to them.Additionally, it is not guaranteed that an Estonian court would rule in their favor.

Another possibility is to pursue legal action against Atomic Wallet in other countries where the company has significant business activities or where a large number of affected users reside.However, this would require the plaintiffs to conduct thorough research to identify the most suitable jurisdiction and to build a strong legal case.

The Role of Insurance in Crypto Security

The Atomic Wallet hack raises the question of whether cryptocurrency wallets and exchanges should be required to carry insurance to protect users in the event of a security breach.Insurance can provide a safety net for users who lose funds due to hacks, scams, or other unforeseen events.

However, the cryptocurrency insurance market is still in its early stages of development. Related: Atomic Wallet wins dismissal of class suit over $100M hack Farnhill said there was no defective transaction between D Aloia and Bitkub to undo.There are only a limited number of insurance providers that offer coverage for cryptocurrency-related risks, and the premiums can be high.Additionally, insurance policies often have exclusions and limitations that may not cover all types of losses.

Despite these challenges, the demand for cryptocurrency insurance is growing.As the industry matures and the risks become better understood, we can expect to see more insurance providers entering the market and offering more comprehensive coverage options.

Practical Advice for Crypto Investors After a Hack

If you've been affected by a cryptocurrency hack, here are some steps you should take immediately:

• Report the incident: File a report with your local law enforcement agency and the relevant regulatory authorities.
• Secure your accounts: Change your passwords for all your online accounts and enable two-factor authentication where possible.
• Monitor your accounts: Keep a close eye on your bank accounts, credit cards, and cryptocurrency wallets for any suspicious activity.
• Seek legal advice: Consult with an attorney who specializes in cryptocurrency law to understand your legal options.
• Beware of recovery scams: Be wary of individuals or companies that offer to help you recover your lost funds for a fee.These are often scams.

Conclusion: A Complex Landscape of Crypto Law and Security

The Atomic Wallet class action dismissal underscores the intricate challenges of navigating legal and security complexities within the cryptocurrency landscape.The ruling, based on jurisdictional issues, highlights the difficulties in holding foreign-based crypto firms accountable in U.S. courts, particularly in cases involving decentralized platforms and global user bases. Author Topic: Atomic Wallet wins dismissal of class suit over $100M hack (Read 31 times)While this outcome offers a temporary reprieve for Atomic Wallet, it also serves as a reminder of the pressing need for enhanced security measures, clearer regulatory frameworks, and increased user awareness in the crypto space.

For cryptocurrency users, the takeaway is clear: prioritize security. In a notable legal development, a United States federal judge has dismissed a class-action lawsuit against Atomic Wallet, an Estonian cryptocurrency firm, due to insufficient jurisdictional grounds. The dismissal, ordered on September 10 by Colorado District Court Judge Philip Brimmer, marked aEmploy strong passwords, enable two-factor authentication, and diligently research wallet providers before entrusting them with your digital assets.The evolving legal landscape demands constant vigilance and proactive measures to protect your investments.Furthermore, this case shines a spotlight on the importance of understanding the distinction between custodial and non-custodial wallets, and the unique security responsibilities associated with each.The future of cryptocurrency security and legal accountability hinges on the collective efforts of regulators, industry players, and individual users working together to create a safer and more transparent ecosystem.As the industry matures, expect to see further developments in both regulation and legal precedent.Remain informed, stay vigilant, and protect your digital assets. Always prioritize security and conduct thorough research before investing in cryptocurrency.Consider this a valuable lesson in the ongoing evolution of crypto security and user protection.