That, in part, is because phone companies themselves must initiate the transfer of a phone number between SIM cards.Дespite this warning nearly five years ago, Cheng said T-Mobile was derelict in their duty to protect BuchananвЂ™s account information and that of other customers. In 2016, the official - who was herself a victim of a SIM swapping incident - said phone companies like T-Mobile вЂњare in a better position than their customers to prevent identity theft through mobile account hijacking and fraudulent new accounts.вЂќ This action remains operative and in force when the victimвЂ™s phone activity is used to hack other online accounts, extort the victim, or cause other foreseeable injuries, such as the one suffered by Plaintiff here.вЂќД¬heng used comments by a Federal Trade Commissioner official to bolster his claim that T-Mobile is responsible for his alleged loss. вЂњIt is T-Mobile, in this case, that effectuates the SIM card change. вЂњUnlike a direct hack of data where a company like T-Mobile plays a more passive role, SIM-swaps are ultimately actualized by the wireless carrier itself,вЂќ the complaint said. Here, Cheng alleges T-MobileвЂ™s inability to safeguard BuchananвЂ™s personal information makes them liable under the CFAA, and heвЂ™s seeking monetary compensation for the loss of his cryptocurrency. The CFAA also allows victims of alleged cyber offenses to target individuals and companies through civil litigation in an effort to recoup financial losses. A criminal investigation into what happened remains ongoing.Д¬heng is suing under a little-known provision of the Computer Fraud and Abuse Act (CFAA), a federal anti-hacking statute that is typically used by prosecutors to go after cyber criminals accused of minor hacking offenses. As a result of the scheme, Cheng says he permanently lost his Bitcoin valued at over $450,000. After gaining access to the accounts, the hacker contacted Cheng via Telegram and convinced him to transfer more than a dozen digital tokens known as Bitcoin for a premium price.Д¬heng transferred the Bitcoin, believing he would be paid by Buchanan and Iterative Capital. That allowed the suspect to gain access to some digital accounts associated with Buchanan where a phone number is required for authentication. (Despite being the target of the alleged criminal act, Buchanan did not appear to be a plaintiff in ChengвЂ™s case.) The co-founder, Brandon Buchanan, became the victim of a вЂњSIM swappingвЂќ scheme in which a fraudster tricked T-Mobile into transferring BuchananвЂ™s phone number from a SIM card inserted into his phone to a different SIM card controlled by the alleged criminal. In this case, Cheng alleges an unknown fraudster targeted the co-founder of an investment firm called Iterative Capital. In a complaint filed in federal court on Monday, Calvin Cheng said he lost the cryptocurrency after becoming a victim of вЂњSIM swapping,вЂќ a technique used by cyber criminals to steal the phone number of an individual in an attempt to gain access to their online accounts. (Photo: The Desk)ДЄ California man has filed a federal lawsuit against wireless phone company T-Mobile after he alleged a recent fraudulent scheme caused him to lose $450,000 in digital cash. It has also filed suits against Coinbase for its alleged mishandling of December 2017вЂ™s bitcoin cash listing.A mobile phone running on the T-Mobile wireless network. the Florida-based cryptocurrency exchange Cryptsy, in which roughly $50 million (approximately 11,300 BTC) was ordered returned to the companyвЂ™s many traders and investors. Notable judgments and settlements in the firmвЂ™s history include Liu v. Silver Miller Law has developed a reputation in the space for bringing investor-led lawsuits to court. Terpin states, вЂњWhat AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner.вЂќ He is now seeking roughly $200 million in damages. The hackers were then able to access his cryptocurrency wallet and steal funds.

In a deposition filed in August, Terpin claims that the hackers obtained access to his phone number with the help of an AT&T customer service representative. Terpin claims that the companyвЂ™s weak security protocols led to his loss of roughly $24 million in crypto funds through two separate SIM swap attacks.

This is not the only SIM jacking case brought against AT&T the mobile carrier is also the subject of a separate $224 million lawsuit brought on by Michael Terpin, the founder of angel investment group BitAngels.

Tmobile sim card hack