US judge dismissed a class-action lawsuit against Atomic Wallet due to no jurisdiction. The court ruled that there was insufficient evidence and that there was no deliberate Colorado targeting. Plaintiffs have 21 days to justify claims against shareholder Ilia Brusov.

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 2023 by a group of users after Atomic Wallet suffered a $100 million hack earlier in June. The allegations against Atomic Wallet According to the plaintiffs, Atomic Wallet had made its app available for download in Colorado and advertised on platforms like X (formerly Twitter), which, they argued, should have established jurisdiction. One of the plaintiffs, Graham Dickinson, a Colorado resident, claimed he had frequently communicated with Atomic Wallet’s customer service team from his home in the state. Insufficient evidence Judge Brimmer dismissed the plaintiffs’ argument, noting that because Atomic Wallet’s products are digital, it was unlikely the company deliberately targeted the Colorado market. “The nature of the products at issue here — software applications — makes it even less likely that Atomic Wallet deliberately exploited the Colorado market,” Brimmer wrote in his ruling. The Colorado District Court Judge Philip Brimmer also ruled that there was insufficient evidence to show that Atomic Wallet had significant contact with the state of Colorado, thus denying the court’s jurisdiction over the company, its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and Evercode Infinite, the software development firm responsible for the wallet’s technology. However, while the case against most of the defendants was dismissed, the judge granted the plaintiffs an additional 21 days to explain why the claims against Ilia Brusov, a shareholder and founder of Evercode Infinite, should not be dismissed. The judge’s ruling marks a crucial step in favour of the crypto wallet provider amid ongoing legal challenges in the aftermath of the hack. This legal victory provides temporary relief to Atomic Wallet as it continues to navigate the fallout from the massive security breach.

Share this article

Categories

Markets

Tags

Crypto wallets Cryptocurrency News

Privado ID’s partnership with Telefonica Tech is aimed at accelerating adoption of privacy-focused and compliant digital identities for users in the European Union. The collaboration comes as the EU prepares for elDAS2, a key regulation on digital identity.

Telefonica Tech, the digital business arm of Spanish telecom giant Telefónica Group, is collaborating with Privado ID to advance privacy technology and adoption of digital identity across the European Union. Privado ID, formerly Polygon ID, will leverage TrustOS, a managed blockchain service by Telefónica Tech to bolster its verifiable credential offering, the two firms said in a press release. “We are delighted to integrate Privado ID technology with our TrustOS platform, advancing the adoption of digital identity solutions that ensure strict compliance with eIDAS2 requirements,” José Luis Núñez, global head of blockchain and web3 at Telefónica Tech, said. Eyeing EU’s digital ID market The strategic alliance comes as the European Union prepares for the European Digital Identity Regulation, aka elDAS2. The regulation provides for the implementation of guidelines mandating EU countries to provide a Digital ID Wallet to citizens. eIDAS2 seeks a standardized framework that will enable EU citizens, residents and citizens to benefit from electronic identification. It also means the adoption of compliant identity solutions, a market Telefónica Tech and Privado ID are eyeing with this partnership. “Empowering large companies to reliably integrate innovative technologies, such as our advanced zero-knowledge proof-based digital identity platform, is key to widespread adoption of self-sovereign identity,” David Schwartz, chief executive officer of Privado ID, said. Targeted use cases include accreditations, digital national IDs, e-signature solutions, and privacy-preserving loyalty programs among others.

Share this article

Categories

Markets

Tags

Europe Technology