A $224 million lawsuit filed against AT&T by a cryptocurrency investor.

Michael Terpin, an investor from the US has filed a $224 million lawsuit against telecommunications giant AT&T. The California resident has alleged that he lost $24 million worth cryptocurrencies due to the negligence of the company.

The Lawsuit

Terpin filed a 69-page complaint against the telecommunication giant in U.S. District Court in Los Angeles. Terpin claimed that he lost his cryptos because of the company’s ‘willing cooperation with the hacker, gross negligence, violation of its statutory duties, and failure to adhere to its commitments in its Privacy Policy’. He had to suffer a loss of cryptocurrencies worth $24 million.

According to Terpin, “digital identity theft” of his cell phone account was used for stealing the digital tokens. He also remarked that he was the victim of two hacks within a period of seven months. An impostor was able to get his phone number immediately after the first hack from an “insider cooperating with the hacker”. And the AT&T store employee didn’t require him to show valid identification or even provide a required password. The same phone number was later used to access his cryptocurrency accounts says the complainant.

Read more: US Federal Court Denies Motion to Remand Against Ripple.

Heavy compensation

Terpin strongly contended that AT&T behaved like a hotel giving rooms keys to a thief with a fake ID. The keys could also open the safety locker in the room thereby enabling to steal jewellery in the safe from the rightful owner. The U.S investor Terpin is on the lookout for $200 million in punitive damages and $24 million of compensatory damages from AT&T. He is the co-founder of an angel group for bitcoin investors, BitAngels and a digital currency fund, BitAngels/Dapps Fund.

However, AT&T has denied accepting the charge levied on them. Moreover, according to an emailed statement, the firm is disputing such allegations. And they said that they are looking forward to presenting their case in the court.

 

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