The Ruling on AT&T’s Damages Claim: What Investors Need to Know

04/05/2023 11:59 • Daily Digest • 61 views

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

When it comes to cryptocurrency investments, security is a top priority. Unfortunately, some investors have suffered significant losses due to theft and scams. In 2017, crypto investor Michael Terpin lost $24 million in cryptocurrency during a SIM exchange attack. Terpin filed a lawsuit of up to $224 million against AT&T, claiming that the telecommunications company was responsible for the theft of his cryptocurrency. However, in a recent ruling, Judge Otis Wright II has rejected Terpin’s damages claim against AT&T.

Background: SIM Exchange Attacks and Michael Terpin’s Losses

A SIM exchange attack is a form of theft in which attackers gain control of a victim’s mobile phone number, allowing them to intercept calls and text messages. This enables the attackers to access other accounts that require two-factor authentication, such as cryptocurrency wallets. In Terpin’s case, he alleges that AT&T was complicit in the SIM exchange attack that led to the loss of his cryptocurrency.

The Ruling: Judge Rejects Terpin’s Claims Against AT&T

Despite Terpin’s claims, Judge Wright has ruled in favor of AT&T, stating that the company is not liable for Terpin’s losses. While the judge acknowledged that Terpin had suffered a significant loss, he stated that AT&T had not acted with malice or fraud in the case. Additionally, the judge noted that Terpin’s claims were time-barred, as the lawsuit had been filed more than two years after the theft occurred.

The Attackers: Ellis Pinksky and Accomplices

According to investigators, Ellis Pinksky and 20 accomplices were responsible for planning the SIM exchange attack that led to Terpin’s losses. Pinksky was only 15 years old at the time of the theft. The attackers are believed to have targeted multiple victims in their scheme to steal up to $100 million in cryptocurrency.

What This Ruling Means for Investors

The ruling in favor of AT&T highlights the challenges that investors face in seeking recourse for losses due to theft or scams. While exchanges and other service providers may have a responsibility to protect their customers, it can be difficult to prove liability in individual cases. As a result, investors should be vigilant in protecting their own assets, including using secure wallets and two-factor authentication.

Conclusion

Investing in cryptocurrency can be a risky proposition, and the loss of funds due to theft or scams is unfortunately all too common. While it is natural to seek recourse when suffering a significant loss, investors should be aware that establishing liability can be difficult. As the ruling in the Michael Terpin case illustrates, even when a theft is clearly perpetrated by criminals, service providers may not always be found liable for damages.

FAQs

1. What is a SIM exchange attack?
A SIM exchange attack is a form of theft in which attackers gain control of a victim’s mobile phone number, enabling them to access accounts that require two-factor authentication.
2. Can investors take legal action to recover losses from theft or scams?
While investors can file lawsuits to recover losses, establishing liability can be difficult, as was the case with Michael Terpin’s claim against AT&T.
3. How can investors protect their cryptocurrency investments?
Investors can protect their cryptocurrency investments by using secure wallets, two-factor authentication, and other security measures to minimize the risk of theft and scams.

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