The post Ninth Circuit Reinstates $24M SIM Swap Lawsuit Against AT&T Amid Bitcoin Theft Allegations appeared on BitcoinEthereumNews.com.

The Ninth Circuit Court of Appeals has reinstated Michael Terpin’s $24 million lawsuit against AT&T, highlighting significant legal developments in the cryptocurrency sector. This case underscores the complexity of SIM swap fraud, a growing concern as more financial transactions migrate to digital platforms. A vital aspect of this case is that it implicates AT&T under the Federal Communications Act, revealing broader implications for telecom carriers’ responsibilities. The Ninth Circuit revives a $24 million lawsuit against AT&T over negligent SIM swap, spotlighting the heightened need for telecom security in the crypto era. Court Decision: A Milestone for Crypto Fraud Victims The Ninth Circuit Court of Appeals has rejuvenated a critical aspect of Michael Terpin’s lawsuit against AT&T, reinstating his claims under the Federal Communications Act (FCA). This revival marks a significant victory for Terpin, who alleges that AT&T’s failure to secure his account led to a SIM swap attack, resulting in the theft of $24 million in cryptocurrency. Details of the Incident and Legal Proceedings In January 2018, hackers managed to compromise Terpin’s phone number by bribing an AT&T employee to perform a SIM swap. Despite enhanced security measures post-2017, including a 6-digit passcode, the hackers exploited vulnerabilities, gaining unauthorized access to Terpin’s accounts. With control over his phone number, they reset passwords and transferred $24 million in cryptocurrencies from his wallets. While one hacker, Ellis Pinsky, returned his share, another, Nicholas Truglia, was ordered by a Los Angeles court to pay Terpin $75.8 million in damages. Analysis: The Broader Implications of the Court’s Ruling The appellate court’s decision reopens essential claims of fraud and negligence against AT&T, hinging particularly on Section 222 of the FCA. This section mandates that telecommunications carriers protect customer proprietary network information. The court recognized that AT&T’s purported failure to do so presented a triable issue,…

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Filed under: News - @ October 1, 2024 1:22 am