Investor Sues AT&T For $224 Million USD Over Crypto Losses

The US entrepreneur and crypto investor Michael Terpin has recently filed a $224 million USD lawsuit against the telecom giant AT&T. The company is being accused of fraud and gross negligence over the theft of digital tokens from his personal account.

The complaint document has 69 pages and it accuses the company of being negligent in a case that happened on January 7, 2018. According to Terpin, the tokens were stolen from him during a “digital identity theft” of his phone account. AT&T was the service provider. The spokesman from AT&T answered that the company disputes the allegations and will present the case in court.

According to the complaint, $23.8 million USD in tokens were lost and Terpin is also seeking $200 million USD in punitive damages for the negligence of the company. According to the complaint documents, AT&T had been previously contacted by the police about these frauds.

Terpin claimed that after the theft of his cryptocurrencies, his cellphone account was transferred to an international criminal gang and AT&T did nothing about it. According to the reports, the theft happened after a SIM (subscriber identification module) swap fraud.

Basically, SIM swapping is tricking a provider into transferring a subscriber’s phone to another card which is controlled by a criminal. Once the criminal gets the phone number of the victim, he uses it to reset passwords and access their online accounts.

Michael Terpin, which is represented by Greenberg Glusker, a litigation firm from Los Angeles, co-founded the first angel group for Bitcoin investors, BitAngels. The foundation was made in early 2013. He is also a senior advisor to Alphabit Fund, which is the largest digital currency hedge fund of the world.

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