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Crime and Investigations

AT&T Prevails in Court Battle Over Alleged Negligence in Crypto Hack

AT&T Prevails in Court Battle Over Alleged Negligence in Crypto Hack

AT&T has emerged victorious in a lawsuit filed by prominent cryptocurrency investor Michael Terpin nearly six years ago.

Terpin had claimed that he lost millions in digital assets following a SIM-swapping hack and alleged that AT&T had failed to prevent the attack and identity theft.

However, a filing from the Central District Court of California shows that AT&T’s motion for Summary Judgment was granted last week, meaning that the judge ruled in favor of the telecommunications giant without the need to go to trial.

In mid-2017, hackers bribed an AT&T employee to swap Terpin’s SIM settings, allowing them to divert calls and messages to their phone. They were then able to reset passwords and send 2FA messages to a new phone, ultimately stealing $24 million in cryptocurrency.

Terpin later filed a lawsuit against AT&T in 2018, asking for compensation for his loss of crypto as well as punitive damages totaling some $240 million. His claims against the company included allegations of negligence, breach of contract, and violation of the Communications Act, among others.

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Judge Hon. Otis D. Wright II initially allowed some of Terpin’s claims to proceed in February 2020, meaning he was allowed to continue pursuing his claims in part after AT&T was awarded a partial dismissal.

At the time, the court found that Terpin had established a “special relationship” with AT&T that may have resulted in the company owing him “economic damages” for negligence or breach of contract. However, the recent ruling found no evidence to support Terpin’s claims against AT&T.

The court ordered that the investor be barred from recovering any damages and that all dates and deadlines in the case be vacated.

This case underscores the need for cryptocurrency users to be cautious about the self-custody of assets and employ proper risk management techniques, such as using multi-signature schemes.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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