Tech entrepreneur and cryptocurrency investor Michael Terpin is suing AT&T for $240 million over cryptocurrency that was stolen from his account. Terpin is well known in the cryptocurrency community as is the founder and CEO of Transform Group, a blockchain and ICO public relations and strategic advisory firm.
His suit alleges that after visiting an AT&T store in Connecticut, a staff member agreed to transfer his personal phone number to a new SIM card. Terpin’s account had been marked for “high risk” protection by AT&T due to an earlier hacking effort, and this extra protection was lost during the transfer. Due to AT&T’s negligence Terpin claims he lost $23.8 million. He is suing for that amount plus $200 million in punitive damages.
Terpin has been called one of the most influential people in the cryptocurrency space and his battle against a huge corporation like AT&T is sure to make a lot of waves. He recently tweeted about AT&T’s negligence.
“Somebody needed to sue AT&T for fraud & gross negligence in letting criminals SIM swap. I just did: bit.ly/Terpin-vs-ATT #bitcoin”
Terpin’s crypto bag was looted in January so it is highly likely that his coins are now worth far less than $23.8 million. Still, Terpin argues that the negligence is worth a severe punishment because SIM card fraud is a known problem that large holders of cryptocurrency deal with.
In the complaint, Terpin’s legal team claims “what AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.”
If successful, Terpin’s lawsuit could have great implications for the way communications companies must handle security issues.
