Crypto Investor Sues AT&T After $24 Million Loss From SIM Swap Hack

Mike Mozart / Flickr

Investor Michael Terpin has recently filed a $224 million lawsuit against AT&T following the loss of $24 million in cryptocurrency.

According to a recent press release, the California-based investor claims the telecommunications company’s negligence lead to the loss in a 69-page complaint, stating “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” is to blame.

In 2013, Terpin co-founded an angel group for Bitcoin investors, called BitAngels, and established a digital currency fund known as Bit Angels/Dapps Fund.

Terpin adds that his cryptocurrency was stolen through means of digital identity theft. The two reported hacking events, which occurred during the time Terpin utilized AT&T as his primary service provider, were approximately seven months apart.

Following the initial hack, Terpin suspects an impostor was granted access to his phone number with the aid of an insider cooperating with a hacker. The information was supposedly collected without an AT&T store employees requiring the potential hacker to show valid identifications or passwords.

The phone number was later used to gather access to Terpin’s digital assets, including cryptocurrency accounts, according to the complaint. Terpin described the situation as being akin to “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.”

AT&T has responded to the allegations in an email statement pledging, “we dispute these allegations and look forward to presenting our case in court.”

More: Cryptocurrency Entrepreneur and Investor Michael Terpin Sues AT&T for Permitting $23.8 Million Theft in “SIM Swap” Scam by Authorized Agent
Interesting: DEA: Criminal Activity Only Occurs in 10% of All Bitcoin Transactions
Photo: Mike Mozart / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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