The U.S. Court of Appeals for the Ninth Circuit has reopened a high-profile case involving telecommunications giant AT&T. The case centers on a 2018 SIM swap incident that led to the theft of $24 million worth of cryptocurrency from crypto investor Michael Terpin. The U.S. court reopens AT&T SIM swap crypto theft case after years of legal battles, with new developments bringing the case back into the spotlight.
The SIM Swap That Shook the Crypto World
The theft occurred in 2018 when a teenager, Ellis Pinsky, and his 21-year-old accomplice, Nicholas Truglia, bribed an AT&T employee to perform a SIM swap. By transferring the information from Terpin’s SIM card to another device, the hackers bypassed the two-factor authentication that protected Terpin’s crypto wallets. This led to the theft of $24 million in cryptocurrency.
SIM swaps have become a well-known hacking method, allowing cybercriminals to hijack mobile numbers to gain access to online accounts. In this case, Pinsky and Truglia used the stolen funds to target Terpin, the founder of crypto incubator BitAngels, who was a significant figure in the cryptocurrency space.
Legal Action Against AT&T
After the theft, Terpin launched a lawsuit against AT&T, accusing the company of negligence. He claimed AT&T employees enabled the SIM swap, which led to the theft of his crypto assets. The US court reopens AT&T SIM swap crypto theft case due to these accusations. Although a California court dismissed most of Terpin’s claims in the initial case, he was able to pursue a claim under Section 222 of the Federal Communications Act (FCA), which deals with the protection of consumer information by telecommunications companies.
Terpin also took legal action against the hackers involved. After tracking Pinsky down, he recovered $2 million from him. In a separate lawsuit, he demanded $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 the 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 has reopened the case, citing that the claim under Section 222 remains valid for further consideration. However, the court upheld the dismissal of Terpin’s initial request for $216 million in damages from AT&T. It is significant that the US court reopens AT&T SIM swap crypto theft case, as it allows him to seek $45 million from the company.
Terpin is now seeking $45 million from AT&T as the case progresses. The appeals court’s decision allows him to move forward with his claim, ensuring that AT&T will again face legal scrutiny over its role in the SIM swap attack.
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 numbers and gain access to sensitive accounts. While high-profile figures like Terpin have been targeted, many everyday users have fallen victim to similar schemes.
In 2020, another crypto investor sued AT&T for facilitating a SIM swap attack that stole $1.8 million worth of cryptocurrency. The prevalence of these attacks has led to calls for telecom companies to take stricter security measures and hold their employees more accountable.This issue has persisted, leading the US court to reopen AT&T SIM swap crypto theft case to address these concerns.
Moving Forward: What’s Next for Terpin and AT&T?
With the case against AT&T reopened, the telecom giant faces renewed legal pressure. Terpin’s legal battle may also set a precedent for other victims of SIM swap attacks who seek to hold telecom companies accountable. The stakes are high, as the case could influence how the industry approaches security in the future.
For now, Terpin continues to seek justice, and the outcome of this case could have lasting implications for both the telecom and cryptocurrency sectors.