- Noted crypto investor Michael Terpin accused the company’s lack of security after hackers stole $24m worth of crypto from him.
- The presiding judge refused AT&T’s plea to dismiss the case.
A lawsuit in which Michael Terpin, a noted cryptocurrency investor accused AT&T Mobility of fraud, negligence and other violations will move forward, as per the ruling of a Los Angeles federal judge. Terpin claims that AT&T’s lack of security allowed hackers to enter his wireless account and rob crypto coins worth around $24 million. This is not the first time that the firm has been put into the spotlight for poor security practices. Last year, a customer had accused AT&T of allowing hackers to swap his SIM card.
AT&T claimed that it was not responsible for the series of SIM swapping incidents that were reported. But the judge involved in the lawsuit denied the firm’s request to dismiss the case saying the company “can be held to answer a lawsuit by Michael Terpin for enabling the theft of $24 million of his cryptocurrency by giving his SIM card to hackers.”
The statement further says:
“The Hon. Otis Wright II rejected the wireless carrier’s effort to dismiss Terpin’s lawsuit for $224 million in its entirety, allowing the cryptocurrency thought leader to pursue federal claims for violation of the Federal Communications Act, breach of contract, and other violations of law.”
The lawsuit recounted the case as a classic example of identity theft, in which the hackers gained access to sensitive financial information by stealing personal information. The plaintiff is seeking damages and compensation worth $224 million.
Details about how the thieves replaced Terpin’s mobile SIM remains unclear, but the lawsuit suggests that they impersonated him to the firm’s customer service agents and requested that the phone number be transferred to their own device. After they gained access to his phone number, they were able to change the password and reset the security on his systems, effectively locking Terpin out. Additionally, the hackers have also changed the password of his crypto account and transferred the digital assets to their wallets.
The suit attributes the incident to “AT&T’s willing cooperation with the hacker, gross negligence, violation of its statutory duties, and failure to adhere to its commitments in its Privacy Policy. What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
Morgan Creek’s Anthony Pompliano tweeted about the incident:
“AT&T tried to get the $24 million SIM swapping lawsuit against them dismissed, but a judge refused to do it. These hacks are incredibly painful for the victims. Make sure you are securing your Bitcoin and crypto properly so you’re not susceptible to these types of attacks .”
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