AT&T customers filed a lawsuit against the company last week, accusing the company of failing to provide “reasonable and appropriate security measures to prevent unauthorized access to their customers’ wireless accounts.” This led to the theft of the cryptocurrency in the plaintiff’s cryptocurrency trading account.

AT&T sued by crypto investors

AT&T customer Jamarquis Etheridge filed a lawsuit against AT&T Inc. and AT&T Mobility LLC in the Southern District of Texas District Court on Wednesday.

Etheridge is a resident of Texas, USA and has been an AT&T customer since 2009. He claimed to be the victim of “SIM card swap” (also known as “SIM card hijacking”). SIM card exchange is a common scam, and AT&T is no stranger to it. The company was involved in a larger case involving this scam with cryptocurrency investor Michael Terpin last year.

Court documents submitted by Etheridge’s lawyer Richard E. Brown stated that on or about September 10, 2020, AT&T “allowed wrongdoers to access the plaintiff Etheridge’s wireless account without his authorization” alleging:

AT&T was unable to control the security breach until the next day, allowing criminals to exhaust the plaintiff Etheridge’s cryptocurrency trading account.

He further claimed that “AT&T is very aware of the general harm caused by SIM swaps” because the company has previously issued public consultations to warn customers of the threats such scams pose to the entire industry.

Etheridge also stated that AT&T assures customers that it is taking adequate measures to prevent unauthorized SIM exchanges by its account holders. Nevertheless, the court documents stated:

AT&T’s approach…Failure to provide reasonable and appropriate security measures to prevent unauthorized access to its customers’ wireless accounts, allow unauthorized persons to authenticate, and then grant access to sensitive customer’s wireless account data, including access And control 159.8 Ethereum tokens.

Court documents stated that after the incident, the price of Ether reached more than US$4,200 per coin. At the time of writing, the price of ETH has fallen to $3,338.

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The plaintiff claimed that due to AT&T’s actions or omissions, he has suffered and will continue to suffer actual losses, including loss of 159.8 ETH, lost time, embarrassment and humiliation, aggravation and depression, fear, anxiety, financial uncertainty, anxiety, emotional distress , And various overheads.

In addition to seeking “compensatory and fair relief” to “restore him to 159.8 ETH,” he also seeks statutory damages, triple damages, punitive damages, attorney’s fee rulings and compensation for all costs, “any pre-judgment and Interest after the judgment “. The amount awarded” and any other relief that the court deems fair and appropriate.

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