The U.S. Court of Appeals for the Ninth Circuit has reopened a high-profile case involving telecommunications giant AT&T. The case centers around a 2018 SIM swap incident that led to the theft of $24 million worth of cryptocurrency from cryptocurrency investor Michael Terpin. A U.S. court has reopened the AT&T SIM swap cryptocurrency theft case after years of legal battles, and new developments are putting the case back in the spotlight.
SIM swap that shook the cryptocurrency world
The theft occurred in 2018 when teenager Ellis Pinsky and his accomplice, Nicholas Truglia, 21, bribed an AT&T employee to perform a SIM swap. Hackers bypassed the two-factor authentication that protects Terpin’s cryptocurrency wallet by transferring information from Terpin’s SIM card to another device. This resulted in the theft of $24 million in cryptocurrency.
SIM swapping has become a well-known hacking method, allowing cybercriminals to steal mobile phone numbers to access online accounts. In this case, Pinsky and Truglia targeted Terpin, the founder of cryptocurrency incubator BitAngels and a prominent figure in the cryptocurrency industry, with the stolen funds.
Legal action against AT&T
After the theft, Terpin launched a lawsuit against AT&T, accusing the company of negligence. He claimed that AT&T employees enabled SIM swapping, which led to the theft of cryptocurrency assets. These accusations led a US court to reopen the AT&T SIM swap cryptocurrency theft case. California courts dismissed most of Terpin’s claims in the initial case, but he was able to pursue claims under Section 222 of the Federal Communications Act (FCA), which governs consumer information protections for telecommunications companies.
Terpin also took legal action against the hackers involved. He tracked down Pinsky and recovered $2 million from him. In a separate lawsuit, he sought $75.8 million in damages from Truglia and won. Truglia was sentenced to 18 months in prison for his role in the scheme.
Appeals court reopens case
Earlier this year, Terpin filed an appeal after a California judge dismissed most of his claims against AT&T. The U.S. Court of Appeals for the Ninth Circuit reopened the case, noting that the Section 222 claims remain valid for further consideration. But the court denied Terpin’s initial request for $216 million in damages from AT&T. It is significant that a US court has reopened the AT&T SIM swap cryptocurrency theft case, allowing AT&T to demand $45 million from the company.
Terpin is seeking $45 million from AT&T as the case progresses. The appeals court’s decision allows him to proceed with his claim, and will once again put AT&T under legal scrutiny for its role in the SIM swap attacks.
The ongoing problem of SIM swap attacks
SIM swap attacks have become a growing problem in the cryptocurrency space. These attacks allow hackers to take control of mobile phone numbers and access sensitive accounts. Although high-profile figures like Terpin have been targeted, many regular users have also fallen victim to similar scams.
In 2020, another cryptocurrency investor sued AT&T for allegedly facilitating a SIM swap attack that stole $1.8 million worth of cryptocurrency. The spread of these attacks has led to calls for telecommunications companies to take stricter security measures and hold employees more accountable. As this issue persists, a US court has reopened the AT&T SIM swap cryptocurrency theft case to address these concerns.
Moving Forward: What’s next for Terpin and AT&T?
The reopening of lawsuits against AT&T puts the telecom giant facing new legal pressure. Terpin’s legal battle could also set a precedent for other victims of SIM swap attacks who want to hold telecommunications companies accountable. The stakes are high as this incident could impact how the industry approaches security in the future.
For now, Terpin continues to seek justice, and the outcome of this case could have lasting impacts on both the telecom and cryptocurrency sectors.