Michael Terpin Sues AT&T for $45M After $24M Crypto Theft via SIM Swap Attack

• Michael Terpin seeks $45M from AT&T after a $24M cryptocurrency theft through a SIM swap that bypassed 2FA on his wallet.
• AT&T faces renewed legal action as the Ninth Circuit allows Terpin’s claim under the Federal Communications Act to proceed.
• Blockchain investigator ZachXBT criticizes telecom firms, urging accountability for SIM swap attacks targeting high-value crypto wallets.

Cryptocurrency investor Michael Terpin is taking legal action against AT&T, seeking at least $45 million in damages. This lawsuit stems from a 2018 incident in which a SIM swap attack allowed a high school graduate to steal $24 million worth of Terpin’s cryptocurrency. 

The SIM swap bypassed two-factor authentication, leaving Terpin’s crypto wallet vulnerable. The case has gained attention as it brings into question the role of telecom companies in protecting customer data from such attacks.

The SIM Swap Attack and Legal Battle

In 2018, Ellis Pinsky, then 15 years old, and an accomplice bribed an AT&T employee to transfer Terpin’s SIM card information to their phone. This allowed the criminals to access Terpin’s crypto wallet, bypassing security measures. 

Terpin’s case against Pinsky has been ongoing, and despite the initial challenges, Pinsky returned $2 million of the stolen funds. After turning 18, Pinsky was sued by Terpin for $71.4 million under racketeering charges.

However, the legal battle does not stop there. In 2019, Terpin also pursued Nicholas Truglia, another accomplice, seeking $75.8 million in damages. Terpin won the case, continuing his aggressive efforts to recover the stolen funds. 

AT&T Faces Court Again

AT&T is facing renewed scrutiny as a part of the case that had been previously dismissed is now back in court. The Ninth Circuit Court of Appeals recently overturned a summary judgment in favor of AT&T. Notably, Terpin’s claim under Section 222 of the Federal Communications Act, which protects SIM card information, will proceed. 

Other claims, including Terpin’s demand for $216 million in punitive damages, were dismissed. Terpin’s attorney, Pierce O’Donnell, emphasized that they will seek the original $24 million in damages, plus additional interest and attorney fees.

ZachXBT Criticizes Telecom Companies

Prominent blockchain investigator ZachXBT commented on X, voicing frustration over the lack of accountability among U.S. telecom companies for SIM swap attacks. His remarks highlight ongoing concerns within the crypto community regarding the vulnerability of systems to attacks that target high-value crypto assets.