Court revives AT&T case over $24M crypto theft through SIM swap
A court has revived part of a 2020 case in which cryptocurrency investor Michael Terpin sued AT&T after $24 million in crypto was stolen through a SIM swap scheme.
The case, which originally ruled in favor of AT&T, has now been partially overturned on appeal, allowing Terpin’s claim under Section 222 of the Federal Communications Act to proceed.
The lawsuit dates back to a 2018 incident where Ellis Pinsky, then a 15-year-old high school student, bribed an AT&T employee to transfer Terpin’s SIM card information to a blank card.
This allowed Pinsky to bypass two-factor authentication and gain access to Terpin’s cryptocurrency wallet, stealing $24 million worth of Trigger tokens.
While Terpin initially filed 16 claims against AT&T, the Ninth Circuit Court of Appeals only reinstated the claim regarding AT&T's responsibility to protect the SIM card information.
The court dismissed Terpin’s fraud claims and his demand for $216 million in punitive damages.
According to Terpin’s attorney, Pierce O’Donnell, Terpin now seeks $24 million plus interest, totaling at least $45 million, along with attorney’s fees.
Despite most of the claims being dismissed, the revived Section 222 claim could set an important precedent for phone companies' liability in future SIM swap-related cases.
Pinsky, who has been involved in a complex legal battle ever since, earned the nickname “Baby Al Capone” for his role in the theft.
He returned $2 million to Terpin and agreed to testify against AT&T.
Terpin also sued Pinsky’s accomplice, Nicholas Truglia, for $75.8 million in 2019, winning the case.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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