Veritaseum CEO suing T-Mobile for $8.7 million due to SIM-swap attacks

Reggie Middleton is claiming that T-Mobile failed to protect him from various SIM-swap attacks that led to him losing $8.7 million over the last 3 years.

By · Jul 23, 2020 . 4min read

Photo by Brett Jordan on Unsplash

Reggie Middleton, the CEO of crypto company Veritaseum, is suing T-Mobile for $8.7 million. The suit alleges that Middleton was the victim of SIM-swaps on several occasions. He said T-Mobile did nothing to protect him and his data.

Middleton claims that he reported the first attack to T-Mobile precisely three years ago in July of 2017. Since then, he has been the victim of three more attacks and claims that T-Mobile has failed to protect his personal and financial information.

A SIM-swap attack is essentially a move by a hacker to transfer his victims SIM card to his phone. An unwitting employee from the telecommunications provider usually helps the hacker in his attack. Once the hacker has control over his victims SIM, he can potentially log in to the victim’s various accounts.

Middleton’s suit states the following. “As a result of T-Mobile’s gross negligence in protecting plaintiffs’ information, its negligent hiring and supervision of T-Mobile employees who were responsible for safeguarding that information, and its violation of laws that expressly protect the information of wireless carrier customers, plaintiffs lost $8.7 million in cryptocurrency.”

His lawyers also claim that Middleton suffers from constant anxiety, fear, and emotional distress due to the repeated instances of the SIM-swap attacks.

In November of 2019, Middleton and Veritaseum had to pay $9.4 million to the US Securities and Exchange Commission. This had to do with fraud claims related to its ICO in 2017.

There have been many lawsuits brought against telecommunications providers recently. Crypto investors have brought at least two lawsuits against AT&T for failing to protect its users. In other cases, BitAngels founder Michael Terpin filed a civil complaint against an 18-year-old who stole $24 million from him through SIM-swap attacks.

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