AT&T Refused Dismissal in $24 Million Crypto SIM-Swap Lawsuit
By Luke Flowers – Crypto Specialist
Michael Terpin, a crypto investor buying and selling Bitcoin, seems to have clinched an early victory in an effort to sue telecom giant AT&T Mobility due to a SIM-swapping hack that saw him lose over $24 million.
Based on court documents that were released on Friday, Los Angeles federal judge Otis Wright II, officially ruled that AT&T has to answer a lawsuit brought by Terpin for allowing the theft of millions of dollars in the form of cryptocurrencies by giving hackers access to his SIM card.
Even though the telecom company requested the court have the lawsuit dismissed completely, the judge refused their plea and decided that AT&T has to answer to Terpin’s claims of the violation of the Federal Communications Act, the breach of contract and a few other legal violations to do with the case.
Terpin demands $23.8 million in compensation damages and $200 million more in punitive damage costs. Terpin was buying and selling Bitcoin and accumulated a figure almost ten times less than the amount he is trying to claim through the lawsuit.
The case was first brought by Terpin back in August 2018 with him claiming employees of AT&T had been involved in a SIM swap fraud. This is a scam in which criminals pose as owners of the victim’s mobile phone number, thereby convincing telecom providers to give them access to the SIM card.
If a user was to buy Crypto and loss through an event such as this, it is dependant on whose negligence caused the hacker to acquire the information and the steps and procedures taken by the telecom company to prevent them from gaining access to your sim.
To make matters worse, this was the second time that Terpin was a victim of a SIM swap hack via AT&T. He even claims to have told the company that his account was high-risk and to have extra levels of security set up after the first incident. In this circumstance, it would seem AT&T’s negligence could have caused the hack.
That’s why it’s vital you ensure you have extra protection in place when using your mobile to buy and sell cryptocurrency or store your coins.