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AT&T wins legal case against crypto investor Michael Terpin

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According to reports, the judge has ruled in AT&T\’s favor, rejecting the damages claim made by crypto investor Michael Terpin against the company. It is reported that Michael Terpi

AT&T wins legal case against crypto investor Michael Terpin

According to reports, the judge has ruled in AT&T’s favor, rejecting the damages claim made by crypto investor Michael Terpin against the company. It is reported that Michael Terpin lost $24 million in cryptocurrency during a SIM exchange attack in 2017 and filed a lawsuit of up to $224 million against AT&T. However, Judge Otis Wright II has now ordered Michael Terpin not to have the right to recover losses from the telecommunications company. According to investigators, Ellis Pinksky and 20 accomplices were responsible for planning a SIM exchange attack to steal up to $100 million in cryptocurrency. According to the case information, Pinksky was only 15 years old when stealing Michael Terpin cryptocurrency. (Yahoo News)

AT& T wins a $24 million damages lawsuit against crypto investor Michael Terpin

In 2017, Michael Terpin, a crypto investor, suffered a loss of $24 million in cryptocurrency due to a SIM exchange attack. In response, Terpin filed a lawsuit against AT&T, seeking damages worth up to $224 million. However, recent reports suggest that the judge has ruled in AT&T’s favor, rejecting Terpin’s claim for damages.

Background on Michael Terpin’s Case

During a SIM exchange attack, hackers gain access to a person’s phone number and use it to reset their passwords on various accounts, including cryptocurrency wallets. This results in the theft of cryptocurrency from the victim’s wallet.
In Terpin’s case, investigators allege that Ellis Pinksky and his 20 accomplices were responsible for planning the attack that resulted in the theft of $24 million worth of Terpin’s cryptocurrency. Pinksky was only 15 years old at the time of the attack.

Terpin’s Lawsuit Against AT&T

Terpin accused AT&T of being negligent in protecting his phone number, which led to the attack. He filed a lawsuit against the company, seeking damages worth up to $224 million.
In his lawsuit, Terpin alleged that AT&T had failed to implement adequate security measures to prevent SIM exchange attacks. He also claimed that AT&T employees had provided Pinksky with access to his phone number without proper authentication.

Judge’s Ruling in AT&T’s Favor

However, Judge Otis Wright II has now ruled in AT&T’s favor, rejecting Terpin’s claim for damages. The judge noted that Terpin had failed to provide sufficient evidence to support his claim that AT&T had been negligent in protecting his phone number.
The judge also stated that there was no evidence that AT&T employees had acted with malice or fraud, which would have justified awarding punitive damages.

Conclusion

The ruling in favor of AT&T has significant implications for the crypto industry, as it sets a precedent that telecommunication companies are not liable for sim exchange attacks. The ruling also underscores the importance of strengthening security measures for cryptocurrency wallets, as they are vulnerable to a range of cyber threats.
While the ruling is a setback for Terpin, it is also a reminder of the importance of taking proactive steps to protect one’s cryptocurrency holdings from cyber threats. This includes implementing robust security measures for cryptocurrency wallets, such as two-factor authentication and cold storage.

FAQs

1. What is a SIM exchange attack?
A SIM exchange attack is a type of cyber attack in which hackers gain access to a person’s phone number and use it to reset their passwords on various accounts, including cryptocurrency wallets.
2. Can telecom companies be held liable for SIM exchange attacks?
The recent ruling in favor of AT&T suggests that telecom companies are not liable for sim exchange attacks, provided they have implemented reasonable security measures to protect customer data.
3. What steps can crypto investors take to protect against SIM exchange attacks?
Crypto investors can take several steps to protect against SIM exchange attacks, including implementing two-factor authentication, enabling cold storage, and using a dedicated device for accessing cryptocurrency wallets.

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