- The crime involved a complex SIM-swap scheme targeting mobile operator AT&T
- The scheme inflicted damages of $24 million on crypto investor Michael Terpin
A crypto hacker who cheated crypto investor Michael Terpin out of millions will pay him $22 million in damages, a court report from the Southern District of New York shows, cited by CoinDesk.
The crime goes back to 2018, when the hacker was only 15, and involved a complex SIM-swap scheme targeting mobile operator AT&T.
Terpin lost $24m
The scheme inflicted damages of $24 million on Terpin. By SIM swapping, the perpetrator bypassed two-factor authentication (2FA) and used AT&T to break into online banks, crypto exchanges, and other sensitive websites.
According to the report, the perpetrator admitted he was directly involved in the SIM-swap and the theft after it. Both Terpin and the hacker signed the court filing. The hacker will provide a detailed account of how the AT&T SIM-swap happened.
Tim Toohey, Terpin’s attorney, expressed hope that the telecom would take responsibility for security failures that resulted in the breach after this detailed information becomes available.
$200m damage claim dismissed
A California court dismissed a $200 million claim for damages from Terpin against AT&T, which he filed two years ago. Except for the claim in the New York court, all claims against the hacker will be dismissed.
