Investor Sues AT&T for $224 Million Following Multi-Million Dollar Cryptocurrency Hack

An American cryptocurrency investor has filed a $224 million lawsuit against the world’s largest telecommunications company, AT&T, for allegedly causing the California resident to lose an estimated $24 million in cryptocurrency, CNBC reports. The plaintiff, Michael Terpin, filed a 69-page complaint with the U.S. District Court in Los Angeles today, August 15th, claiming that he lost $24 million dollars in cryptocurrency due to “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.”

A longtime AT&T user, Terpin reports that his multi-million dollar cryptocurrency losses are attributed to a case of ‘digital identify theft’ of his cellphone account. Terpin has been subject to two attacks in the last seven months.

“After the first hack, Terpin alleged that an impostor was able to get his phone number from an ‘insider cooperating with the hacker’ without an AT&T store employee requiring him to show valid identification or provide a required password,” reports CNBC. “That phone number was later used to access Terpin’s cryptocurrency accounts, according to the complaint.”

“What AT&T did was like a hotel 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,” said Terpin.

AT&T responded in an emailed statement saying that it looks forward to presenting its case in court disputing the allegations.

Michael Terpin is co-founder of an angel group for Bitcoin investors called BitAngels along with an additional currency fund called the BitAngels DApps Fund.

“BitAngels/Dapps Fund, is seeking $200 million in punitive damages and $24 million of compensatory damages from AT&T,” reports CNBC.

This latest lawsuit is one of the biggest filings on record surrounding cryptocurrency.

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