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.
Legal Battles with Hackers
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:
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The cryptocurrency world witnessed a surge in hacking incidents in August, with a staggering $313.86 million stolen from various platforms and individuals. This alarming trend highlights the growing threat of cybercrime in the digital asset space.
Phishing Attacks Lead the Charge
Phishing attacks emerged as the primary method used by hackers, accounting for a whopping $293.4 million of the total amount stolen. These attacks involve tricking victims into revealing sensitive information, such as login credentials or private keys, which are then used to gain unauthorized access to their accounts.
Major Incidents
Two significant incidents dominated the headlines in August:
1. $238 Million Bitcoin Heist: Hackers made off with a massive $238 million worth of Bitcoin (BTC), leaving the community reeling.
2. $55.4 Million Dai (DAI) Hack: The decentralized finance (DeFi) space was targeted, resulting in the theft of $55.4 million in Dai stablecoins.
A Growing Concern
The increasing frequency and severity of crypto hacks raise concerns about the security measures in place to protect users' assets. As the cryptocurrency market continues to evolve, it is crucial for individuals and platforms to prioritize robust security protocols and educate themselves on potential threats.
Stay Vigilant
In the face of these alarming trends, it is essential for crypto enthusiasts to remain vigilant and take proactive steps to secure their assets. This includes:
- Using reputable exchanges and wallets
- Enabling two-factor authentication
- Keeping software and firmware up to date
- Being cautious of phishing attempts
By working together, we can create a safer and more secure environment for cryptocurrency transactions and storage.
#CryptoSecurityMatters #HackingIncidents #BlockchainSecurity #PowellAtJacksonHole