The U.S. Court of Appeals reopened a case against AT&T over a 2018 SIM swap that led to the theft of $24 million in cryptocurrency.
The United States Court of Appeals for the Ninth Circuit has reopened a case against AT&T, an American multinational telecommunications company. This company’s employees were responsible for enabling a Subscriber Identity Module (SIM) swap that resulted in the seizure of cryptocurrencies valued at $24 million in 2018.
The United States District Court for the Central District of California rightfully dismissed nearly all charges brought against AT&T, except the claim in which the plaintiff presented a triable issue under Section 222 of the Federal Communications Act (FCA), according to a filing published by the court panel.
The Court Reopened Case Against AT&T
In 2018, Ellis Pinsky, a 15-year-old, and Nicholas Truglia, a 21-year-old, conspired to bribe an AT&T employee to transfer the information on crypto investor Michael Terpin’s SIM card to a vacant card in their phone.
The duo was able to circumvent the two-factor authentication safeguarding Terpin’s crypto wallets and steal $24 million in his crypto assets due to the SIM exchange.
Terpin, the proprietor of BitAngels, an international crypto incubator, filed a lawsuit against AT&T and employed his investigative abilities to locate Pinsky following the discovery of the incident. The stolen cache was returned by the 15-year-old for $2 million.
Terpin also pursued legal action against Truglia a year later, requesting $75.8 million in damages, ultimately prevailed. Additionally, Truglia was sentenced to 18 months in incarceration by the court.
After turning 18 in 2020, the crypto investor filed a lawsuit against Pinsky, seeking $71.4 million in damages. Ultimately, the plaintiff agreed with Terpin to pay a mere $22 million and offer testimony in the AT&T case.
Damages Reduced to $45 Million
Terpin’s request for $216 million in damages from AT&T and 12 other claims was denied by a California magistrate in 2020 due to their lack of legal standing. Just three of the 16 claims submitted by the crypto investor were approved by Judge Otis Wright.
Terpin submitted an appeal against the California judge’s ruling earlier this year. The Appeals Court panel acknowledged Wright’s summary judgment on charges brought after the hackers gained control of Terpin’s phone while partly dismissing Wright and confirming the judge’s dismissal of some claims.
The crypto investor requests $45 million from AT&T, as the tribunal did not overturn Wright’s rejection of Terpin’s demand for $216 million in damages.
In 2020, another crypto investor filed a lawsuit against AT&T for aiding cybercriminals in a SIM exchange attack that resulted in the theft of $1.8 million in cryptocurrencies.
