Cryptocurrency

The court rejects the claim of a cryptocurrency investor for compensation of $ 200 million against AT&T

The court dismissed a $ 200 million damages claim against mobile operator AT&T. The lawsuit was filed by Michael Turpin over SIM card fraud resulting in the loss of cryptoassets.

Judge Otis Wright of California’s Central District Court granted AT&T’s motion to dismiss concealment, misstatement, and punitive damages claims. Cryptocurrency investor Michael Terpin said that in 2018, as a result of fraud with a SIM card, cryptocurrencies worth about $ 24 million were stolen from him, and accused AT&T of aiding scammers.

AT&T lawyers said on Tuesday that Turpin’s claim of fraud by hiding information is unfounded because the mobile operator’s privacy policy does not guarantee complete protection against third-party intrusions. Therefore, no attempt has been made to hide or only partially represent the limitations of the security protocol.

The court also dismissed allegations that AT&T employees knew about the security flaws associated with the two-factor authentication protocol, but did not take them into account. Because Turpin’s $ 200 million damages claim was based on AT&T’s allegations of fraud and employee negligence, the judge dismissed the existing claim.

However, the court allowed Turpin to file claims for punitive damages in individual claims. The cryptocurrency investor first filed a lawsuit against AT&T in August 2018, claiming that the company had failed to properly protect his cell phone from potential hacking, although it should have done so.

The court earlier rejected AT&T’s motion to dismiss the case, ruling that Turpin demonstrated how hackers could use his phone’s two-factor authentication to access cryptocurrency wallets while he relied on the protection of a mobile operator.

The case continues on the remaining allegations that AT&T violated contract and that employees unauthorized disclosures of private information to hackers. Turpin is still suing AT&T for $ 23.8 million.

Recall that last fall, another cryptocurrency investor filed a lawsuit against AT&T. According to him, the firm’s employees gained access to his account, which led to the theft of more than $ 1.8 million, including in cryptocurrencies.

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