A U.S. appeals court has revived investor Michael Terpin’s lawsuit against telecommunications company #AT&T concerning the theft of $24 million in cryptocurrency following a SIM swap hack. This decision allows Terpin to continue his legal claims under the Federal Communications Act (#FCA ).

Key Claims Reconsidered

A Ninth Circuit Court of Appeals panel reinstated a key claim in the case, in which Terpin alleges that AT&T allowed hackers to take over his phone account, leading to the loss of his #Cryptocurency portfolio. This ruling reinstates part of the lawsuit that had been previously dismissed and allows Terpin to continue his claims based on federal laws protecting telecommunications data.

Fraud and Negligence by AT&T

The court ruled that Terpin presented enough evidence to show that AT&T's failure to protect his account resulted in hackers gaining access to his phone number through a fraudulent SIM swap. They then used this number to access his personal data and change his passwords, ultimately stealing $24 million worth of cryptocurrency.

The 2018 SIM Swap Hack

The hack occurred in January 2018, when a group of #hackers , led by 15-year-old Ellis Pinsky, allegedly paid AT&T employees to transfer Terpin’s phone number to a SIM card under their control. Despite new security measures implemented after a previous breach, the hackers found a way to bypass the protection. Once they gained access to his phone number, they changed his passwords and stole the cryptocurrency.

Pinsky returned his portion of the stolen funds, but another hacker, Nicholas Truglia, was ordered by a Los Angeles court to pay Terpin $75.8 million in damages. This case highlighted the vulnerability of cryptocurrency accounts during SIM swap attacks.

AT&T and Hacking Incidents

Around the same time, AT&T faced another issue with hackers allegedly stealing customer information, such as call logs and text messages. AT&T reportedly paid $400,000 in bitcoin to hackers to remove the stolen data, although the company officially neither confirmed nor denied the payment.

What’s Next?

The reinstatement of Terpin’s claim allows the lawsuit to proceed, with Terpin seeking $24 million in damages, plus interest and legal fees. His legal team believes this verdict may pave the way for other consumers to sue telecommunications companies for insufficient protection during SIM swaps.

AT&T has apologized to Terpin but noted that most of the allegations against the company were dismissed, and they remain confident in defending the remaining claims. This case has attracted attention from blockchain experts, as the number of #HackingIncidents related to cryptocurrency continues to rise.

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“