AT&T involved in cryptocurrency scam, $224 million lawsuit filed by plaintiff

On 13th August, Michael Terpin, a US-based entrepreneur and cryptocurrency investor filed a $224 lawsuit against American Telephone & Telegraph Company [AT&T] according to a report by Reuters. The complaint was filed by the plaintiff at the United States District Court in Los Angeles against the defendant, AT&T.

Terpin is reportedly using the telecommunications company as his service provider. He said that the hackers stole the tokens after digitally identifying his cell phone account. In several months, Terpin was victimized twice.

Terpin was represented by his counsel, Los Angeles litigation firm, Greenberg Glusker. In the complaint, the plaintiff accuses the defendant of willingly cooperating with the hacker and exhibiting gross negligence. Furthermore, the plaintiff claimed that it was a violation of the company’s own statutory duties.

The company failed to adhere to its commitments in its Privacy Policy, which resulted in a loss of nearly $24 million worth of cryptocurrency, the plaintiff complained.

Terpin alleged that a scammer was able to retrieve his cell number from an “insider cooperating with the hacker”. The impostor did not require any valid proof of identification or password. According to the complaint, the same number was later misused to access Terpin’s cryptocurrency accounts.

The complaint further claimed that the theft occurred through a SIM [subscriber identification module] swap fraud, which involves tricking the service provider into transferring subscribers’ number to a SIM card owned by somebody else. Once the hacker receives the cell number, it can then be used to reset passwords and permit entry to online accounts.

The plaintiff was seeking a recovery of  $23.8 million and an additional $200 million as punishment, the complaint said.

A spokesperson from the AT&T told Reuters in an email response:

 “We dispute these allegations and look forward to presenting our case in court.”

This year has reportedly seen a lot of hacking incidents. A recent investigation conducted by Group-IB [international firm dedicated to investigate and prevent sophisticated crimes and online fraud] revealed that the USA, Russia, and China are primary targets for crypto hackers.

Recently, the American Golf Association, Professional Golf Association [PGA]’s servers were hacked just before the start of the golf world Championship, according to reports from Golfweek.

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