$224 Million Lawsuit Against AT&T Over Cryptocurrency Loss

Aug 16, 2018 at 03:40 Update Date :Aug 16, 2018 at 03:40 UTC

US-based entrepreneur and crypro-investor Michael Terpin has sued telecommunications giant AT&T for a lawsuit of $224 million. He called the company out for fraud and gross negligence in the wake of a theft of cryptocurrencies from his personal account.

In his complaint filed with the US District Court located in Los Angeles, Terpin explained that the coins were removed from his account through what he says was a digital ID theft of his mobile phone account. In his complaint, he mentioned that his cell services was provided by AT&T. The roughly 3 million tokens stolen from Terpin amount to $23.8 million. Allegedly, Terpin is also looking to get $200 million in damages.

An AT&T spokesperson stated in a response sent via email:

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

However, the complaint also noted that legal and regulatory bodies have had to contact AT&T before as well on account of such charges.

According to market data, the current market cap for the crypto-market stands at approximately $200 billion. 9 years post the emergence of Bitcoin, the world has seen over 1,800 cryptocurrencies come into existence.

Terpin is being represented by LA-based law firm Greenberg Glusker. He claimed in his lawsuit that after his digital identity was stolen, the account was sold off to an international criminal gang.

Terpin was one of the founders of BitAngels back in 2013 for Bitcoin investors. He is also one of the names responsible for the BitAngels/Dapps Fund in March 2014. He acts as senior advisor to the Alphabit Find, on of the largest hedge funds in the crypto world.

According to Terpin’s complaint, the theft of the coins was allegedly made possible by fraudulently swapping SIM cards (used to verify and authenticate users for their subscribed cell phone services). SIM swapping is achieved by tricking a provider into taking a verified user’s number and transferring it to another card controlled by an unknown third party. Once the external Individual gets hold of the verified phone number, it can be used to reset passwords and get hold of all accounts registered to it.

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