Atomic Wallet has successfully gotten a class-action lawsuit dismissed, which was related to a $100 million hacking incident.

A class-action lawsuit against Atomic Wallet was dismissed by a U.S. federal judge because it couldn’t be established that the court had the authority over the Estonian cryptocurrency company. On September 10, Judge Philip Brimmer from a Colorado district court threw out the case which also named Atomic Wallet’s CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the company that develops the wallet’s software. This legal action was initiated by a collective of users in August 2023, following a significant security breach where hackers stole $100 million in cryptocurrency from the wallet in June of the same year.

Judge Brimmer concluded that the interactions between Atomic Wallet and the state of Colorado were not enough to justify the court’s authority over the company and the other defendants in the lawsuit. Back in November, Atomic Wallet moved to have the lawsuit dismissed, claiming it had no connections to the U.S. and highlighting that among the 21 plaintiffs, only Graham Dickinson was from Colorado, where the case was filed.

The lawsuit had contended that Atomic Wallet’s ads appeared in Colorado on the platform now known as X, its app was accessible for download there, and Dickinson had regular communications with Atomic Wallet’s support from his Colorado residence. However, Judge Brimmer argued in his ruling that the digital nature of Atomic Wallet’s products, like software applications, reduces the likelihood that the company intentionally targeted the Colorado market by providing software, mnemonic keys, security updates, or by sending cash back tokens to Dickinson.

He further noted, “Unlike physical products that need to be physically delivered to a state, Atomic Wallet’s services can be accessed by users without the company necessarily knowing their location.” Despite dismissing the case, Brimmer gave the plaintiffs a 21-day window to justify why the case against Ilia Brusov, a co-founder of Evercode Infinite and shareholder in Atomic Wallet, should proceed. According to the court documents, both Brusov and Sokolov hold a 12.8% share in Atomic Wallet, with CEO Gladyshev holding the majority at 74.4%.