Plaintiff alleges that an AT&T insider helped a criminal enterprise obtain his SIM card leading to a $24 million theft
Terpin, a cryptocurrency investor at that time, had set up his accounts to make them as secure as possible, even consulting with a security expert to help him with this task. The victim’s theory is that criminals were going through the LinkedIn app to find people working at wireless providers that could be paid off to help the criminal obtain a SIM card for the victim’s phone. When this card is inserted into a burner device owned by the criminal, he has complete control over the victim’s handset, apps, and other accounts.
Michael Terpin had $24 million worth of cryptocurrency stolen thanks to a SIM swap he says is AT&T’s fault. | Image credit-Globe Newswire
Terpin’s big victory in the Ninth Circuit Court of Appeals came about when the judges ruled that customer proprietary network information (CPNI), which is protected under the Federal Communications Act, may have been violated. The court’s decision stated that agreeing with AT&T‘s “constrained view of CPNI” would lead to “absurd results.”
“Our decision is also consistent with the FCC’s views. In a report addressing new proposed CPNI rules, the FCC recognized that SIM swap fraud ‘allows the bad actor to gain access to information associated with the customer’s account, including CPNI, and gives the bad actor control.'”-Decision by the Ninth Circuit Court of Appeals
Mr. Terpin’s lead attorney, Pierce O’Donnell, senior partner at Greenberg Glusker, said, “This is a major precedential decision of national significance. Rejecting all of AT&T‘s arguments, the Court of Appeal held that AT&T can be liable in damages under the Federal Communications Act when it allows a hacker to get into its system, access the customer’s AT&T account, and steal the customer’s private information or assets–in this case $24 million of cryptocurrency.”
Terpin will seek at least $45 million from AT&T which includes interest and attorney’s fees
O’Donnell continued by adding, “The decision paves the way for our client to go to trial and hold AT&T accountable after more than six years of litigation. We look forward to asking a Los Angeles federal jury to award Mr. Terpin $24 million plus at least $14 million of interest plus his attorney’s fees for a total of at least $45 million.”
After the decision by the Appeals Court to remand the case back to U.S. District Court in Los Angeles, Terpin said that the decision goes beyond his particular case. “This is not just a victory for me, but for thousands of innocent consumers who had their identity compromised, their safety and privacy breached, and in many cases their funds stolen due to lax and indifferent security practices by AT&T,” he stated. “Letting this summary judgment stand would have been a horrific precedent. I am grateful to the Ninth Circuit Court of Appeals for their comprehensive analysis and just decision.”