An AT&T customer filed a complaint against the company last week, accusing it of failing to provide “reasonable and appropriate security to prevent unauthorized access to its customer wireless accounts.” This led to the theft of cryptocurrency from the claimant’s crypto exchange account.

AT&T sued by Crypto Investor

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

Etheridge, a resident of the US state of Texas, has been an AT&T customer since 2009. He claims to be the victim of a “SIM swap”, also known as “SIM card hijacking”. SIM swapping is a common scam that AT&T is no stranger to. The company was involved in a larger case involving this scam last year with crypto investor Michael Terpin.

The court document filed by Etheridge’s attorney, Richard E. Brown, indicates that on or around September 10, 2020, AT&T “authorized criminals to access plaintiff Etheridge’s wireless account and, without his authorization,” alleging :

AT&T was unable to contain this security breach until the next day, allowing criminals to empty claimant Etheridge’s cryptocurrency exchange account.

It further alleges that “AT&T was well aware of the pervasive damage posed by the SIM swap” because the company had previously issued public notices warning customers of the industry-wide threat of this type. of scam.

Etheridge also said AT&T has assured customers that it is taking adequate steps to prevent unauthorized SIM card swaps from its account holders. Nonetheless, the court document reads as follows:

AT&T engages in practices that… do not provide reasonable and appropriate security to prevent unauthorized access to its customer wireless accounts, allowing unauthorized persons to be authenticated and then gain access to sensitive data. client wireless account, including access and control of 159.8 ethereum tokens.

After the incident, the price of ether rose to over $ 4,200 per coin, the court document notes. As of this writing, the price of ETH has fallen to $ 3,338.

The plaintiff claims that as a result of AT & T’s actions or inactions, he suffered and continues to suffer actual damages, including the loss of 159.8 ETH, lost time, embarrassment and humiliation, aggravation and frustration, fear, anxiety, financial uncertainty, discomfort, emotional distress and various expenses.

In addition to seeking “compensatory and equitable redress restoring him” to 159.8 ETH, he also seeks redress for statutory damages, treble damages, punitive damages, award of legal fees. ‘attorney and reimbursement of all costs, “pre- and post-judgment interest on any amounts awarded”, and any other relief that the court considers fair and appropriate.

What do you think of this case? Let us know in the comments section below.

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