Bitcoin investor sues telecom giant AT&T for $224 million over his loss in cryptocurrencies 21034
Madhurima Roy
Aug 16, 2018 at 2:20 PM

Bitcoin investor and entrepreneur, Michael Terpin has sued AT&T, a US based multinational telecommunications company, for the loss of his $24 million. AT&T was his service provider, which could not shield the data in his cellphone and that led to a "digital identity theft" as hackers swiped $24 million in cryptocurrencies from his account.

SEE ALSO: Distributed Systems joins Coinbase to decentralize online identities with Blockchain

Terpin announced he was suing the company on 15th August on Twitter, stating: “Somebody needed to sue AT&T for fraud & gross negligence in letting criminals SIM swap. I just did:  #bitcoin

The Bitcoin investor's lawsuit

The first angel group for Bitcoin investors- BitAngels, filed a 69-page lawsuit with the US District Court in Los Angeles. On 7th January, 2018, Terpin’s tokens were stolen and has asked for compensation for the three million stolen tokens that valued $23.8 million compensation and $200 million in punitive damages.

The complaint also stated that this was not the first time that Terpin's account was hacked. It stated that his account was hacked twice in seven months.

SEE ALSO: Turkey TRY-ing Bitcoin (BTC)- a shock absorber for its unstable economy

AT&T clients have faced security issues earlier too. The lawsuit confirmed the same, and stated that SIM swap frauds are not uncommon to the company and it had faced such legal complaints earlier.

The lawsuit stated, it was "most troubling” that “AT&T has not improved its protections even though it knows from numerous incidents that some of its employees actively cooperate with hackers in SIM swap frauds by giving hackers direct access to customer information and by overriding AT&T's security procedures.”

U.S. News & World Report reported that AT&T in an email refuted the accusation, stating: "We dispute these allegations and look forward to presenting our case in court."


Image via Shutterstock

Join our Telegram group