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Atomic Wallet wins dismissal of class suit over $100M hack

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A US court has dismissed a class action lawsuit against Atomic Wallet, ruling that it lacks jurisdiction over the case. The lawsuit, which involved allegations of negligence and security breaches, was thrown out on procedural grounds rather than on the merits of the claims.

The plaintiffs had filed the class action suit alleging that Atomic Wallet, a popular cryptocurrency wallet provider, failed to protect users from significant financial losses due to a security breach. They sought compensation for damages resulting from unauthorized transactions and security lapses.

In its ruling, the court determined that it did not have the jurisdictional authority to hear the case, citing issues related to the location of the parties involved and the contractual agreements governing disputes. The decision underscores the importance of jurisdictional considerations in class action lawsuits and highlights the complexities involved in cross-border legal disputes.

A spokesperson for Atomic Wallet commented, “We are pleased with the court’s decision to dismiss the case due to lack of jurisdiction. Our team remains committed to providing robust security measures and excellent service to our users. We will continue to focus on maintaining the highest standards of protection and compliance.”

The dismissal of the class action lawsuit is a significant development for Atomic Wallet, as it alleviates the immediate legal pressures facing the company. However, the decision does not address the underlying allegations, which may still influence public perception and regulatory scrutiny.

The case highlights ongoing concerns in the cryptocurrency industry regarding security and user protection. Despite the court’s decision, the incident underscores the need for continuous vigilance and improved security measures by digital asset service providers.

Legal experts suggest that while the court’s dismissal resolves jurisdictional issues, affected users may seek alternative avenues for redress or pursue claims in different jurisdictions. The case also serves as a reminder of the importance of clear jurisdictional clauses in user agreements and the potential complexities of international legal actions.

As the cryptocurrency industry continues to evolve, issues of security and legal accountability remain critical concerns for both service providers and users. The resolution of this case may set a precedent for how similar disputes are handled in the future.

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Binance tightens South African compliance rules for crypto transfers

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Binance is tightening compliance measures for crypto transactions in South Africa, announcing it will fully implement the country’s Travel Rule requirements beginning January 2025. The move aligns with regulations set by South Africa’s Financial Intelligence Centre (FIC) and reflects the exchange’s broader efforts to meet global anti-money laundering standards.

Under the new rules, Binance will require South African users to include verified personal information—such as names, addresses, and account details—when sending or receiving crypto between platforms. These changes are designed to increase transparency and traceability of digital asset transfers, making it harder for illicit actors to exploit decentralized networks.

Binance emphasized that users must complete know-your-customer (KYC) verification before transferring crypto to or from external wallets. Transfers to non-compliant platforms may be restricted or flagged, while internal transfers within Binance or to Travel Rule-compliant entities will remain unaffected.

The announcement follows South Africa’s decision in 2023 to designate crypto as a financial product, placing digital asset providers under the supervision of the FIC. The country has since taken steps to integrate crypto into its formal regulatory structure, including licensing requirements and mandatory reporting obligations.

With enforcement beginning in 2025, Binance urged users to familiarize themselves with the new procedures to avoid disruptions. The exchange also plans to provide additional guidance and tools to help users remain compliant as the deadline approaches.

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Ethereum bounces back as market dominance recovers from all-time low

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Ethereum has staged a notable recovery after recently experiencing its lowest market dominance since its early days. The turnaround comes as ETH surged nearly 4% in the past 24 hours, climbing back above the $3,100 mark and narrowing its underperformance gap relative to Bitcoin.

For much of 2024, Ethereum has trailed behind Bitcoin and a growing wave of altcoins, with its market share dropping below 15% — levels not seen since 2015. The slump was driven by investor focus on Bitcoin ETF momentum, lackluster institutional interest in ETH, and rising competition from layer-1 and layer-2 networks offering faster and cheaper alternatives.

Despite these challenges, Ethereum’s fundamentals remain strong. Data shows a healthy uptick in active addresses, transaction volumes, and total value locked in DeFi protocols built on Ethereum. Additionally, hopes remain high for the approval of a spot Ethereum ETF in the U.S., with analysts suggesting a potential turnaround in institutional flows if approved.

Traders are now watching whether this rebound signals a sustained trend reversal or just a temporary relief rally. With key upgrades and ecosystem developments still in the pipeline, Ethereum’s ability to regain dominance may hinge on reigniting both investor confidence and broader developer activity.

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SEC says it won’t re-file fraud case against Hex’s Richard Heart

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The U.S. Securities and Exchange Commission (SEC) has confirmed it will not pursue a retrial in its fraud case against HEX founder Richard Heart, effectively bringing an end to one of the agency’s high-profile crypto enforcement actions.

The decision follows a recent court ruling that dismissed several key allegations against Heart, including claims that he misled investors and violated securities laws through the promotion and sale of HEX, PulseChain, and PulseX tokens. While the SEC initially signaled it would consider further legal options, it has now opted to forgo additional litigation.

Heart, a controversial figure in the crypto world, had long denied the SEC’s accusations, framing the lawsuit as an overreach by regulators. The agency had alleged that Heart raised over $1 billion from investors while misrepresenting how funds would be used and failing to register the offerings.

With the SEC stepping back, the dismissal marks a rare instance in which the regulator has chosen not to continue a crypto-related fraud case, potentially signaling a reassessment of its approach amid growing legal pushback and mounting scrutiny over its enforcement tactics.

Although the case is now closed, legal analysts suggest the outcome could influence future regulatory efforts and may embolden other crypto founders facing similar challenges. Heart, meanwhile, has positioned the development as a vindication, reaffirming his stance that HEX and related projects were never in violation of U.S. securities laws.

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