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ATT loses $ 1.8 million petition to dismiss cryptocurrency theft lawsuit

May 20, 2020

Consuelo Marshall, District Judge of the United States, has rejected AT T’s motion to dismiss a lawsuit The company did not neglect the theft of $ 1.8 million cryptocurrency by investor Seth Shapiro.

In the judge’s order, which makes it possible to continue the lawsuit, Shapiro’s actions for negligence and negligent surveillance, lawsuits under the Computer Fraud and Abuse Act and the demand for punitive damages, They were left intact.

SIM swap attack

Shapiro, an Emmy Award-winning media technology consultant who previously worked for companies like Disney and Showtime, Lawsuit against ATT filed in December 2019The company’s vulnerabilities led to thefts in several attacks.

ATT loses $ 1.8 million petition to dismiss cryptocurrency theft lawsuit
ATT loses $ 1.8 million petition to dismiss cryptocurrency theft lawsuit

SIM exchange attacks require the participation of employees of a telecommunications company. The telecommunications operator intentionally or involuntarily assigns the victim’s account to a SIM card controlled by a malicious actor, which in turn can access the target’s information or accounts.

The court order states that Shapiro suffered its first SIM swap attack in May 2018where an ATT employee observed the SIM exchange activity on the account [del demandante] and assured him [al demandante] that your SIM card will not be replaced without your approval. “

“”ATT did not implement adequate data security systems and procedures and did not monitor its own personnel.;; Instead, he stayed on the sidelines while his employees used his position in the company to gain unauthorized access to Mr. Shapiro’s account, to steal, extort and threaten Mr. Shapiro for money, “said the complaint .

Shapiro has until May 29 to submit a changed complaint in response to the order.

The 15-year-old hacker steals a $ 24 million SIM swap attack

ATT is also facing an ongoing lawsuit from pioneering cryptocurrency investor Michael Terpin.who is seeking more than $ 200 million in compensation for a $ 23.8 million SIM swap attack in January 2018.

Last month, the case took a surprising turn when Terpin initiated a new lawsuit against the alleged perpetrator of the attackwho has just turned 18.

At the time of the attack, the defendant Ellis Pinsky was only 15 years old and returned $ 2 million in funds. Now that he’s of age, Terpin is suing the remaining amount plus damages totaling $ 71.4 million.

Talk to Cointelegraph Terpin said he was “a little surprised to discover that the alleged brain was only 15 years old at the time.”and added his surprise that “this was supposedly not his first hack or robbery”.

Terpin, who claimed Pinsky had $ 100 million, said, “We believe he was honest when he texted one of our informants that he was still hiding $ 100 million abroad.”