BITANGELS MICHAEL TERPIN: NEGLIGENCE OF MAJOR PHONE COMPANIES IS CRYPTOS BIGGEST THREAT

Imagine waking up to discover that a substantial portion of your cryptocurrency fortune has vanished, not due to a market crash or a smart contract exploit, but because of a glaring security lapse by a major phone company. BitAngels Michael Terpin: Negligence of Major Phone Companies Is Crypto s Biggest ThreatThis is the reality that American blockchain investor and BitAngels co-founder, Michael Terpin, faced, thrusting the issue of phone company negligence into the spotlight as a critical threat to the crypto world. Subscribe to Cointelegraph: Terpin is an American blockchain and crypto investor who has supported over 100 ICOs since enteringTerpin, a prominent figure who has supported over 100 Initial Coin Offerings (ICOs) since entering the blockchain space, found himself a victim of a sophisticated SIM swap attack, resulting in the theft of nearly $24 million worth of cryptocurrency.This incident ignited a legal battle with AT&T, highlighting the urgent need for enhanced security measures and greater accountability from telecommunication giants.Beyond the legal ramifications, Terpin's experience underscores a broader vulnerability within the digital asset landscape, raising serious questions about the safety of personal data and the responsibility of service providers in protecting their customers from increasingly sophisticated cyber threats. This interview has been edited and condensed. Monday, MaThis article delves into Terpin's ordeal, the implications for the crypto industry, and the ongoing fight for justice and improved security.

The SIM Swap Nightmare: How Phone Company Negligence Leads to Crypto Theft

The method used to steal Michael Terpin's cryptocurrency was a SIM swap attack, a technique that exploits vulnerabilities in phone carrier security protocols.In essence, hackers were able to convince an AT&T employee to transfer Terpin's phone number to a SIM card they controlled. { payload :{ allShortcutsEnabled :false, fileTree :{ :{ items :[{ name : 0x-dex-protocol-suspended-because-of-vulnerability-funds-safe-b5e .md, path : 0x-dexWith control of his phone number, they could then intercept two-factor authentication codes sent via SMS, granting them access to his cryptocurrency accounts.

This wasn't a one-off event.According to Terpin, his phone line had previously been targeted. ""Mr.Terpin's phone went dead again,"" recounts a report, ""and an employee at an AT&T store in Connecticut ported his wireless number to an imposter in violation of AT&T's commitment to use enhanced security."" This recurring negligence despite prior warnings, formed a central pillar of Terpin's legal case against AT&T.

But how can one person's phone number be used to steal millions in cryptocurrency? Security must readLet's break it down:

1. Gaining Control: The hackers first impersonate the victim to the phone company, providing enough information to convince them that they are the legitimate account holder.
2. Number Porting: They then request a transfer of the victim's phone number to a SIM card in their possession.This process is often called ""porting.""
3. Intercepting 2FA: With the victim's phone number now under their control, the hackers can intercept SMS-based two-factor authentication codes.
4. Account Access: They use these intercepted codes to log into the victim's cryptocurrency exchange accounts, email accounts, and other sensitive platforms.
5. Theft and Laundering: Once inside, they transfer the cryptocurrency to their own wallets, often using sophisticated techniques to launder the stolen funds.

The ease with which hackers can execute these SIM swap attacks highlights a critical flaw in the current security infrastructure of major phone companies.The reliance on easily obtainable personal information and the lack of robust verification protocols make users vulnerable to these types of attacks.

Michael Terpin's Legal Battle Against AT&T: A Fight for Accountability

After suffering significant financial losses from the SIM swap attack, Michael Terpin took legal action against AT&T, seeking to hold the company accountable for its alleged negligence.His lawsuit brought claims for:

• Negligence: Accusing AT&T of failing to adequately protect his personal information and prevent the unauthorized transfer of his phone number.
• Breach of Privacy Policy: Arguing that AT&T violated its own privacy policy by failing to safeguard his sensitive data.
• Violation of the Federal Communications Act (FCA): Asserting that AT&T failed to meet its statutory obligations under the FCA to protect subscriber data.

Terpin's case gained considerable attention within the cryptocurrency community, with many seeing it as a crucial test case for holding large corporations responsible for security breaches that result in significant financial losses for their customers.While Terpin initially won a substantial settlement against the perpetrator, Nicholas Truglia, recovering from AT&T proved more difficult.He argued that AT&T’s security measures were insufficient and that their negligence directly enabled the hackers to steal his cryptocurrency. United States-Based investor Michael Terpin won $75.8 million in a civil case against 21-year-old Nicholas Truglia, who allegedly defrauded him of crypto assets. InterviewHe sought to demonstrate a pattern of similar breaches and a failure to adequately protect customer data.

The Importance of Setting a Precedent

Terpin's legal battle isn't just about recovering his losses; it's about establishing a precedent that forces phone companies to take cybersecurity seriously.If successful, his case could pave the way for other victims of SIM swap attacks to seek legal recourse against negligent service providers.This would, in turn, incentivize phone companies to invest in stronger security measures and better protect their customers' data. Michael Terpin um investidor americano em blockchain e cripto que j trabalhou com mais de 100 projetos executando Initial Coin Offerings (ICOs) desde que entrou no espa o blockchain no in cio de 2025. Terpin foi cofundador da BitAngels em 2025 e, mais recentemente, fundou a empresa de blockchain PR Transform Group.The outcome of this case could significantly impact the future of cryptocurrency security and the responsibilities of telecommunication companies in the digital age.

The Broader Implications for the Cryptocurrency Industry

Michael Terpin's experience shines a light on a significant vulnerability within the cryptocurrency ecosystem: its dependence on centralized services that are susceptible to security breaches. Negligence of Major Phone Companies Is Crypto s Biggest Threat . BitAngels Michael Terpin, Make In India, Made in IndiaWhile blockchain technology itself is inherently secure, the infrastructure surrounding it, such as cryptocurrency exchanges, phone companies, and email providers, often lags behind in terms of security.This creates opportunities for hackers to exploit weaknesses in these centralized systems to gain access to cryptocurrency holdings.

Furthermore, the anonymity and decentralized nature of cryptocurrency can make it difficult to track down and recover stolen funds.Once cryptocurrency is transferred to a hacker's wallet, it can be quickly moved through multiple exchanges and mixers, making it extremely challenging for law enforcement to trace and seize the stolen assets.

The Terpin case serves as a stark reminder that even the most sophisticated cryptocurrency investors can fall victim to simple yet effective hacking techniques.It underscores the need for greater awareness of these risks and the importance of taking proactive steps to protect one's digital assets.

Addressing Security Vulnerabilities in the Crypto Space

The cryptocurrency industry must address these security vulnerabilities to ensure the long-term viability and widespread adoption of digital assets. Michael Terpin es un inversor estadounidense de blockchain y criptomonedas que ha trabajado con m s de 100 proyectos que ejecutan Ofertas Iniciales de Monedas (ICOs) desde que ingresaron al espacio blockchain a principios del 2025. Terpin cofund BitAngels en el 2025 y, m s recientemente, fund la empresa de blockchain PR Transform Group.This requires a multi-faceted approach that includes:

• Enhanced Security Measures by Phone Companies: Implementing stronger verification protocols to prevent SIM swap attacks and other forms of phone-based fraud.
• Improved Security Practices by Cryptocurrency Exchanges: Adopting more robust security measures, such as multi-factor authentication, whitelisting of withdrawal addresses, and cold storage of funds.
• User Education: Educating cryptocurrency users about the risks of SIM swap attacks, phishing scams, and other common hacking techniques.
• Development of Decentralized Security Solutions: Exploring decentralized alternatives to centralized services, such as decentralized exchanges and decentralized identity solutions.

Bitcoin's Future: Michael Terpin's Perspective

Beyond the immediate concerns of security and legal battles, Michael Terpin also offers insights into the future of Bitcoin and the cryptocurrency market. Cointelegraph sat down with Terpin at BlockShow Americas in Las Vegas to get into the details of the case, discuss the current ICO landscape, the difference between centralized and decentralized cryptocurrencies and where he sees Bitcoin s price three to five years from now. Crypto s Biggest Threat. Michael Terpin:In an interview with Cointelegraph, Terpin shared his perspective on where he sees Bitcoin's price in the next three to five years.While specific price predictions are inherently speculative, his outlook is shaped by his extensive experience in the blockchain space and his understanding of market trends.

He believes that the future of Bitcoin depends on several factors, including:

• Institutional Adoption: The continued interest and investment from institutional investors, such as hedge funds, pension funds, and corporations.
• Regulatory Clarity: The development of clear and consistent regulations for cryptocurrencies around the world.
• Technological Advancements: The ongoing development of new technologies that improve the scalability, security, and usability of Bitcoin.
• Macroeconomic Factors: Broader economic trends, such as inflation, interest rates, and geopolitical events.

Terpin's views often emphasize the importance of regulation and institutional involvement in legitimizing and stabilizing the crypto market.He suggests that as more institutions enter the space, and as regulatory frameworks become more defined, Bitcoin's price will likely continue to appreciate, though with inevitable periods of volatility.

Protecting Yourself from SIM Swap Attacks: Practical Tips

While phone companies work to improve their security protocols, there are several steps you can take to protect yourself from SIM swap attacks:

1. Use a Strong Password and Unique Username for Your Phone Account: Avoid using easily guessable information, such as your birthday or pet's name.
2. Enable Two-Factor Authentication (2FA) on All Your Accounts: Use a 2FA app like Authy or Google Authenticator instead of SMS-based 2FA, as SMS is vulnerable to interception.
3. Set Up a PIN or Password on Your Phone Account: This will require anyone attempting to make changes to your account to provide the PIN or password.
4. Be Wary of Phishing Emails and Phone Calls: Never provide personal information to anyone who contacts you unexpectedly, even if they claim to be from your phone company.
5. Consider Using a Hardware Security Key: A hardware security key, such as a YubiKey, provides the strongest level of protection against phishing and other types of account takeover attacks.
6. Monitor Your Phone Account Activity Regularly: Check your call logs, text messages, and account settings for any signs of suspicious activity.
7. Consider a Port Freeze: Some carriers offer a ""port freeze"" or ""number lock"" that prevents your number from being transferred without your explicit authorization in person.
8. Inform Your Carrier of Your High-Value Assets: While it shouldn't be necessary, letting your carrier know you are a target and inquiring about enhanced security options might prompt them to take extra precautions.

The Role of BitAngels in Fostering Security Awareness

As co-founder of BitAngels, Michael Terpin has been instrumental in supporting and promoting innovative blockchain projects. Interview by Michael Cayley of www.Cdling.com Sponsored by Aird and Berlis LLP www.airdberlis.comVideo and editing services by www.motionandstill.comHis experience with the SIM swap attack has undoubtedly heightened his awareness of the importance of security within the cryptocurrency ecosystem. BitAngels Michael Terpin: Negligence of Major Phone Companies Is Crypto s Biggest Threat This interview has been edited and condensed. Michael Terpin is an American blockchain and crypto investor who has worked with over 100 projects running Initial Coin Offerings (ICOs) since entering the blockchain space in early 2025. Continue Reading on Coin Telegraph Disclaimer: FusionMoreBitAngels, through its network of investors and advisors, can play a significant role in fostering security awareness and promoting best practices among blockchain startups.

BitAngels can contribute by:

• Investing in Security-Focused Startups: Supporting companies that are developing innovative security solutions for the cryptocurrency industry.
• Providing Due Diligence on Security Practices: Evaluating the security practices of blockchain startups before investing in them.
• Educating Portfolio Companies on Security Risks: Providing resources and training to help portfolio companies understand and mitigate security risks.
• Promoting Collaboration on Security Standards: Facilitating collaboration among industry stakeholders to develop common security standards and best practices.

Conclusion: A Wake-Up Call for the Crypto Industry

Michael Terpin's ordeal serves as a stark warning to the cryptocurrency industry: negligence of major phone companies is a real and present threat. Mr. Terpin s phone went dead again, and an employee at an AT T store in Connecticut ported his wireless number to an imposter in violation of AT T s commitment to use enhanced security. The hackers stole nearly $24 million worth of cryptocurrency.The ease with which hackers can exploit vulnerabilities in phone carrier security protocols to steal millions of dollars in cryptocurrency is deeply concerning and demands immediate action. Michael Terpin lost a fortune to a phone SIM swap. When he went to war to get it back, he found some surprising allies.While Terpin's legal battle against AT&T continues, his experience has already raised awareness of this critical issue and spurred calls for greater accountability from telecommunication companies.The long-term success and widespread adoption of cryptocurrency depend on addressing these security vulnerabilities and building a more secure and resilient ecosystem.By implementing stronger security measures, educating users about the risks, and fostering collaboration among industry stakeholders, we can mitigate the threat of SIM swap attacks and other forms of phone-based fraud. Law enforcement prosecuted the scammers, and Terpin sued AT T for its misconduct, bringing claims for the carrier s negligence, for breaching its privacy policy, and for violating its statutory obligations under the Federal Communications Act (FCA) to protect subscriber data.Ultimately, the future of cryptocurrency hinges on our ability to protect personal data and safeguard digital assets from malicious actors. Cointelegraph talks with American blockchain investor MIchael Terpin about why he s suing AT T and where he sees Bitcoin in 3-5 years.What will you do today to enhance your security posture? BitAngels Michael Terpin: Negligence of Major Phone Companies Is Crypto s Biggest Threat cryptoanalytica.co comments sorted by Best Top New Controversial Q A Add a CommentConsider implementing at least one of the practical tips mentioned earlier and stay vigilant in the face of evolving cyber threats.