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Dogecoin (DOGE) founder, Jackson Palmer, has weighed in on an alleged cryptocurrency theft linked to internationally recognized telecommunications company AT&T, saying it is surprising cryptocurrency millionaires are falling prey to the same technology they are advocating.
Palmer and other cryptocurrency enthusiasts are disturbed over the $23.8 million stolen fund of U.S. entrepreneur and cryptocurrency investor Michael Terpin.
Commenting on the incident, Palmer said service providers needs to stop SMS 2FA.
“Don’t get me wrong, SIM jacking is ridiculous and 1) cell providers need to get their act together + 2) services need to stop supporting SMS 2FA.”
Furthermore, he said, the problem is not cryptocurrency’s but that of anyone who keeps huge amount in a centralized wallet.
“This isn’t a dig at cryptocurrency, it’s a dig at anybody who keeps $24M worth of cryptocurrency on a centralized exchange, defeating the entire purpose of said cryptocurrency.”
He, however, clarified that he’s not mocking anyone, but feels sorry for anyone whose fund is carted away through SIM hacking.
“Note so journalists don’t misquote me: I obviously feel sorry for the people who get hacked via SIM hacking, it’s a terrible thing that I’m glad is getting eyes on it. At the same time, actually use cryptocurrency as intended would mitigate these attacks entirely.”
Terpin, whose fund was stolen, has filed a $224 million lawsuit on Wednesday against AT&T, accusing the firm of fraud and gross negligence in connection with his stolen cryptocurrency in his personal account.
Terpin made known in a 69-page lawsuit filed before the U.S. District Court in Los Angeles that on January 7, 2018, his funds were carted away through what he branded a “digital identity theft” of his cellphone account. He mentioned AT&T as his service provider.
According to Terpin, the token was stolen through a SIM card swap fraud. This is done when service providers are tricked to transfer ownership of a SIM to another SIM card controlled by someone else.
Through this phone number, password and One time tokens sent to a SIM card can be used to reset accounts.
Terpin is an early investor in cryptocurrency. He cofounded BitAngels in 2013 and the first digital currency fund, the BitAngels/Dapps Fund around 2014.
Image Credit: Bitcoin Exchange Guide.
Cryptocurrency investor Michael Terpin has sued the telecom giant AT&T, alleging that the company failed to protect his cell phone from a hacking incident that ultimately cost him $24 million.
In a lawsuit filed by Los Angeles litigation firm Greenberg Glusker on August 15, Terpin claimed that AT&T’s employees have been complicit in a SIM swap fraud. In this type of scam, criminals pose as the owners of their victims’ mobile phone numbers, convincing telecom providers to grant them access to their phones.
This allows them to access the victim’s accounts at various services, which includes cryptocurrency wallets.
The lawsuit claims that Terpin’s account has been hacked twice in seven months, saying “most troubling, AT&T has not improved its protections even though it knows from numerous incidents that some of its employees actively cooperate with hackers in SIM swap frauds by giving hackers direct access to customer information and by overriding AT&T’s security procedures.”
Terpin is seeking $24 million in compensatory damages and a further $200 million in punitive damages, according to the suit.
The lawsuit also claims that security issues are nothing new to AT&T, which has been already accused of failing to protect its clients.
“In recent incidents, law enforcement has even confirmed that AT&T employees profited from working directly with cyber terrorists and thieves in SIM swap frauds,” the plaintiff contended.
In a statement, Terpin said that “mainstream adoption of cryptocurrency cannot take place as long as phone company employees are handing over critical unauthorized access to the heart of everyone’s digital lives.”
When reached for comment, AT&T director for corporate communications Jim Greer told CoinDesk that “we dispute these allegations and look forward to presenting our case in court.”
He declined to elaborate on the company’s objections to the allegations.
Image via Shutterstock
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Respected cryptocurrency influencer, investor and YouTuber, Ian Balina, whose nothing less than $1 Million fund was stolen in a wallet has come out on Twitter to throw light into the April hack which many pointed was cooked by him to evade tax.
Ethereum World News had earlier reported that Ian Balina claimed the fund was carted away by unknown hackers, who, according to Balina, requested he change his college email after receiving notification that it was compromised. In the email, it appeared the hacker got access to Balina’s Evernote account where he kept the text versions of his private keys as encrypted text files with passwords.
The ICO pundit has said he was unperturbed, but will do everything within the confine of the security to see that the perpetrators are brought to book.
In a fresh indication, which twiterrati noted is a major step towards identifying the hackers, Balina first said the hackers work under a group by the name “Lizard Squad”, before pointing that hackers “Veri and Doc” are majorly on security operative’s radial.
“We believe it was a hacker group going by the name “Lizard Squad.” They’ve been behind numerous attacks on other people and companies in the crypto space. We’ve received intel the same hackers are responsible for hacking Bithumb exchange.”
“Correction, not Lizard squad. Independent hackers that are rivals. Hackers by the names veri & doc are persons of interest. Others helping launder money.”
He said the hackers have access to AT&T tools and phone carrier employees on payroll, which they are using to get pins to phone number accounts.
“Numerous people in investor networks are now getting hacked by them via phone/SIM swaps. They’re paying employees at phone carriers like @ATT, @TMobile, etc. for employee login info via the dark web.”
Earlier, Balina in a conversation with Gizmodo made known that the hackers have been identified.
“I’ll be ready to talk when the criminal has been arrested. We have identified who did it and this is a lot bigger than me. Other big names in crypto have been hacked by this criminal. Currently working with FBI, that’s all that I can say. The allegations that I would pull a stunt like this publicly for tax evasion is completely ludicrous. Any attempts to write anything regarding those lies will be met with legal action.”
While assuring crypto lovers that the hackers are going to be apprehended, he said International law enforcement is actively monitoring every single move they make, and will make sure they are fished out in no time.