Seth Shapiro, VideoCoin’s head of strategy, filed a lawsuit on October 17 in U.S. District Court for the Central District of California accusing the telephone company for neglecting to protect his cell phone during a May 2018 hack. Hackers were able to gain entry into his wallets on 11 exchanges worth over $1.8 million dollars. The claim affirmed that two employees who were from Tucson, Arizona and working for AT&T, led the operation.
Jarrett White and Robert Jack got $4,300 and $585.25, individually, from programmers. The theft happened when Shapiro declared the culmination of $50 million from a private ICO, instead of a public deal.
After a progression of SIM swaps, Shapiro lost $1.7 million in digital currency. Cybercriminals gained control of his cellphone, accessed his email along with his trade records to take a total of a million dollars and a balance that belonged to other individuals who were investing in crypto projects with him.
AT&T spokesman Jim Greer said:
“It is unfortunate that Mr. Shapiro experienced this, but we dispute his allegations. We look forward to presenting our case in court.”
Joel Ortiz, the genius behind the Shapiro hack, was sentenced to 10 years in prison earlier this year. An associate, who was considered a minor was also charged in several cases. Ortiz was accused of taking several million dollars, of which only 400,000 were returned to his accounts.
Another SIM hack allegation was brought against AT&T a year ago, when Michael Terpin, a crypto executive and business partner in several ventures, claimed to have lost $23.8 million when Shaipro's cell phone was hacked.
The SIM swap losses have led to an undeniable inquiry for security specialists.
The CEO of the California-based SIM card security supplier DontPort – Haseeb Awan, spoke to CoinDesk and said,
“Individuals ought to keep away from SMS [verification] at whatever point conceivable.”
SIM swapping is a notable risk among the more prominent crypto community, and are frequently focused on due to their exposure and because they may hold higher amounts in their accounts. Shapiro told his investors that he took his cell phone to AT&T when his phone all of a sudden quit working.