While cryptocurrency scams and lawsuits are usually based on "Exit-scams" and outright frauds, Michael Terpin, a U.S.-based cryptocurrency investor, has filed a mammoth $224 million lawsuit against his telecom operator, citing the theft of digital tokens.
As reported by Reuters, Aug. 15, Terpin is holding telecommunications giant AT&T liable for gross negligence and fraud after discovering crypto thefts from his account.
Terpin first discovered the series of token thefts in January 2018 after his "Digital identify" was stolen from his mobile phone provider.
Los Angeles-based law firm Greenberg Glusker is fighting the case on Terpin's behalf and noted the investor's phone number was promptly switched to an "International criminal gang" after the crypto theft.
In his complaint, Terpin cited the theft of digital tokens to a "SIM swap," a popular fraud tactic used by criminals.
Terpin claimed that $23.8 million worth of 3 million digital token units were stolen as a result of identity theft.
In addition to seeking $200 million in punitive damages, he alleged that AT&T was involved in comparable frauds.
Terpin was contacted by law enforcement officials in this regard.
Terpin's impressive bet in cryptocurrencies arose from his apparent belief in the digital asset class.
Terpin also advises the cryptocurrency hedge fund Alphabit, which raised over $300 million in 2017 to invest in the burgeoning asset sector.
Bitcoin Investor Sues AT&T For $224 Million in Alleged Crypto Fraud
Published on Aug 17, 2018
by Cryptoslate | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.