AT&T Files for Dismissal in $24M Phone Hack Case, Claims Crypto Exec Didn't Read Terms

Terpin claims he lost $24 million in crypto due to AT&T's negligence. The firm says he didn't read the company's policy documents.

AccessTimeIconApr 1, 2020 at 3:00 p.m. UTC
Updated Aug 19, 2021 at 1:36 a.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

U.S. mobile operator AT&T hopes to dismiss crypto investor Mike Terpin's amended case over a SIM-swap hack, claiming he had not read the firm's terms and conditions.

AT&T's attorneys took issue with three parts of the second amended complaint and his request for millions in punitive damages, arguing they showed the plaintiff was himself mostly responsible for the SIM-swap scam – a type of phone hack involving stealing someone's mobile identity.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Filed at the federal court in the Central District of California earlier this week, AT&T's motion to dismiss asks the presiding judge dismisses Terpin's concealment and misrepresentation claims, as well as his request for punitive damages, with prejudice. If granted, it would mean Terpin could not bring the matter before the court again.

    Terpin first accused AT&T of civil negligence in August 2018, alleging an employee had been bribed by a criminal gang to pass over control of his SIM card. Terpin claimed the mobile giant knew he was at risk of falling victim to a SIM-swap hack but did nothing to warn him or prevent an attack from taking place. He is suing AT&T for $23.8 million in compensation, as well as $200 million in punitive damages.

    But AT&T argues in this week's filing that Terpin has not been able to show how the company concealed alleged flaws in its data security system or how he was misled. He has already admitted that he had not actually read the privacy policy and code of business conduct documents that he claimed had misled him.

    "Mr. Terpin all but admits that he cannot base a misrepresentation claim on written documents by AT&T, which he does not allege that he even saw or read, much less relied upon," reads the filing. "He has all but conceded that his 11 misrepresentation claim should be dismissed with prejudice."

    A judge denied A&T's previous dismissal motion in February, giving Terpin 21 days to submit an amended complaint that addressed some of its deficiencies.

    Last December, in a separate case, AT&T filed a motion for dismissal against another crypto executive who had fallen victim to a similar phone hack, claiming the case had "critical holes."

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.