A US Court refused to grant damages to the tune of US$ 200 Million. The decision came when a Judge of the Court in the State of California while hearing the high profile SIM-Swap Crypto Lawsuit filed by Michael Terpin against AT&T – an American telecom giant headquartered in Downtown Dallas, Texas.
The lawsuit was filed by Michael Terpin in the year 2019 against AT&T alleging that the company had acted negligently and involved in committing a fraud. While the Court dismissed the claim of US$ 200 Million, however, during the arguments the Judge was of the view that even though the claim has been refused but still company is answerable to the lawsuit filed by Michael Terpin for allegedly stealing crypto-asset worth over US$ 24 Million belonging to the plaintiff (i.e. Michael Terpin). The allegation raised by Michael Terpinagainst AT&T was that a representative of the company illegally and fraudulently compromised sim cards which were owned and under-control of Michael Terpin and subsequently the sim cards were then intentionally and deliberately handed over to the hackers for committing a fraud upon Michael Terpin which resulted in a theft of over US$ 24 Million worth crypto coins.
Another allegation raised by Michael Terpin against the company entailed that the lax security of the company allowed the looters to gain unauthorized access into his wallet and thereby causing stealing of the crypto-assets lying therein.
The case was duly argued before the court by the counsels of both, the plaintiff and the defendant. The counsel for AT&T however refuted the allegations by contending that the company was not at all responsible for any alleged SIM-swapping complaints. AT&T also denied the allegation that the breach of wallet of Michael Terpin was caused due to the lax security of the company instead the account of MichaealTerpin was put on high security alert wherein special protection was applied. AT&T also argued that the access to any account requires entering a six-digit pin code which was within the knowledge of Mr. Terpin and his wife alone and if the password had been compromised then either of them are responsible.
While writing the decision the Court however noted that this is a classic case of identity theft in which firstly the hackers impersonated managed to steal the personal information of Michael Terpin and then established a contact with the customer support team of AT&T. Secondly, they requested the Customer Support to transfer the phone number to their device, and then they were able to request a password change which then led to transferring the crypto-assets lying with the account of Michael Terpin into their own crypto wallets accounts.