Customer Sues AT&T for $224 USD Over Cryptocurrency Theft

Karan Balwani

August 16, 2018 4:36 pm

Crypto Hack

Customer Sues AT&T for $224 USD Over Cryptocurrency Theft
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Michael Terpin, an AT&T customer has filed a 69-page complaint against the wireless provider in the United States. Notably, Terpin lost $24 million as a result of a cryptocurrency theft. He blamed AT$T for negligence and not adhering to the company’s own Privacy Policy.

Terpin has been the victim of two such hacks within the span of 7 months. The entrepreneur and cryptocurrency investor claims that it was due to AT&T’s ignorance that the hacker was able to once again get his phone number and personal information. This information was exploited to gain access to his cryptocurrency accounts.

Although there has been an increasing number of scams in the crypto space, the hackers were aware of the fact that Terpin was storing his cryptocurrencies in his smartphone.

According to Terpin, the first incident happened through a sim card swap, an increasingly common way of gaining access to a user’s cryptocurrency. This method involves the intervention of the operator to transfer the phone number to a different SIM card, which was carried out without any proper verifications in place. 

Once the swap was complete, the hackers were able to reset the existing passwords for Terpin’s account, gaining direct access to his crypto coins.

Terpin is seeking $200 million in punitive damages and $24 million as a compensation from AT&T. The cellular company had previously come under criticism for its Wiretapping scandal which was used to listen in to private conversations without any authority.

Such incidents act as a reminder to all cryptocurrency investors that it is essential that one takes personal responsibility to store their crypto-assets securely.

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