Angel Investor in Seattle Files Lawsuit Against Bittrex After Losing 100 Bitcoins

    Gregg Bennett, a Seattle-based Investor, is suing Bittrex exchange for an AT&T SIM swap crypto hack worth nearly $1 million in bitcoin (over 100 BTC coins stolen).

    Cryptocurrency Exchange, Bittrex, is battling a lawsuit filed against them by a client whose 100 Bitcoins were hacked and stolen while held under their custodial services. Gregg Bennett, the client in question, lost close to $1 million of his investment given the prevailing BTC price.

    The hack took place in April 2019 after Gregg’s AT&T sim was swapped and a Bittrex account accessed by the malicious system intruders. Gregg, an angel investor based in Seattle, took the matter before a court in Washington State. He accuses Bittrex of violating its security protocols which they have published for consumer knowledge and protection.

    Gregg claims that the hackers used an IP address from Florida and this should have alarmed Bittrex of a probable breach in his account. The hackers withdrew 100 BTC which is the maximum limit set by Bittrex for span of 24 hours; they later liquidated some of the Bitcoin at prices way below the market value. His defense team claims that Bittrex ought to have stopped withdrawals from this account for at least a day within which the password was changed.

    Bittrex in its defense commented on the issue through their CEO, Bill Shihara. The digital exchange noted that they have put in place security measures such as email and two-factor authentication within its ecosystem.

    Bill added that a client’s email may also be hacked exposing them to the risk posed by crypto hackers; an issue they have highlighted in the past;

    “I think this is a problem that requires a lot of solutions and a lot of layers of security. And unfortunately, one of the mantras that we use and often publish articles about is that ultimately you can’t trust your phone. You have to be aware that you could lose control of your phone.”

    AT&T’s Involvement

    According to Gregg, the hacking may have been facilitated by insiders working for AT&T because his social security and pin numbers were changed. However, the angel investor from Seattle is yet to sue AT&T as well but noted that this option is still open for him.

    Jim Greer, a spokesman for AT&T, said that they have in the past warned clients on trusting their phones in data security and are working to improve this;

    “Fraudulent SIM swaps are a form of theft committed by sophisticated criminals. We are working closely with our industry, law enforcement and consumers to stop and prevent this type of crime.”

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Lujan Odera
    Lujan Odera
    Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    TRON (TRX) Price Analysis (February 23)

    • The trend of the coin looks bullish in its medium-term while the short-term outlook is in a range-bound. • Patience is required at this...

    Block.One’s Beta Launch Of EOS Based Social Network Voice Raises Privacy Alarms’s Facebook asking for tons of personal data to jo Voice beta More concerning than privacy alarms is the use of data to...

    Criminal Assets Bureau Confiscates Over 6,000 Bitcoin But Unable to Sell Them

    The Criminal Assets Bureau (Cab) has confiscated 12 online accounts, wallets containing 6,000 bitcoin of a drug dealer who had €55 million (over $59.6...

    Top Medical Firms Set to Develop a Blockchain Solution to Prevent Counterfeit Drug Supply

    Top medical firms partner to develop a blockchain based solution to combat counterfeit drugs in the market. The MediLedger blockchain aims to verify...

    EOS Suffers “Major Outage” on Coinbase as Network Performance Issues Arise

    This month alone Coinbase suffered issues with EOS thrice, the exchange is still investigating the problem. Meanwhile, No blockchain is cartel resistant, but EOS’s the...

    New Jersey Introduces Bill For Crypto Firms To Obtain Licenses From State Authorities

    A New Jersey lawmaker introduces a bill to regulate the cryptocurrency and digital assets industry. The bill states each virtual asset company must obtain...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.