The Incident: What Happened to Michael Terpin?

In January 2018, cryptocurrency investor Michael Terpin found himself the victim of an elaborate plot that robbed him of a staggering $24 million. This wasn’t just a simple burglary; it was a high-tech heist involving a SIM swapping attack. Terpin, a well-known figure in the crypto space and founder of BitAngels, had his phone number hijacked by hackers who impersonated him to fleece his clients.

How the Hack Unfolded

The initial hack occurred in June 2017 when Terpin’s phone number was seized, allowing the hackers to trick one of his clients into sending cryptocurrency directly to them. After meeting with AT&T to secure his account, Terpin thought his troubles were over. Fast forward to January 2018, and he found himself in hot water again — another SIM swap and this time, the hackers walked away with millions.

AT&T’s Alleged Role in the Drama

Terpin alleges that an AT&T employee was not just a bystander, but actively enabled the second hack by facilitating the SIM swap. When Terpin reached out to the telecom giant to cancel his account after the first attack, he claims they didn’t act quickly enough, paving the way for the hackers to exploit his accounts. What a way to lose a fortune, right?

The Court Ruling: A Mixed Bag for Terpin

Recently, a California federal judge ruled in Terpin’s favor, allowing him to pursue three claims against AT&T, despite dismissing a whopping thirteen others. According to Judge Otis Wright II, the court found enough reason to believe that AT&T may have failed to provide adequate security for Terpin’s SIM card, suggesting that their negligence contributed to the theft.

Sticking It to the Telecom Giant

Terpin doesn’t plan to back down. He intends to file an amended complaint to clarify that AT&T had prior knowledge of vulnerabilities involving SIM swaps, suggesting a pattern of negligence. As he aptly put it, they “consciously disregarded” the risks to their clients’ wealth. Meanwhile, AT&T, ever the confident corporation, is fighting these allegations tooth and nail, claiming Terpin hasn’t proven ownership of the crypto or how it was stolen.

The case serves as a reminder for all crypto investors to keep their digital assets locked down tighter than a drum. Because let’s face it: if someone’s out to steal, no amount of security measures will ever be completely foolproof.