A 15-year-old crypto hacker, who swindled crypto investor Michael Terpin out of millions, has agreed to pay $22 million to the victim, according to a court filing in the Southern District of New York.
The hack dates back to 2018 and involved an elaborate SIM-swap scheme that targeted mobile operator AT&T (T), which ultimately resulted in Terpin losing cryptocurrencies worth $24 million. SIM-swapping is a way of bypassing two-factor authentication (2FA) using mobile operators to break into sensitive websites like crypto exchanges and online banking.
The hacker confirmed his direct involvement in the SIM-swap and subsequent theft, according to the court filing, which has been signed by both Terpin and the hacker. A detailed account of how the AT&T SIM-swap occurred will also be provided by the 15-year-old.
Terpin’s attorney, Tim Toohey, said that he hopes that with this detailed information AT&T will take responsibility for security failures that led to the breach.
In 2020, a California judge dismissed a $200 million damages claim against AT&T from Terpin. All remaining claims against the hacker, other than the New York state law claim for conversion, will be dismissed.
Sign up for Market Wrap, our daily newsletter explaining what happened today in crypto markets – and why.
Please note that our
do not sell my personal information
has been updated
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
which invests in
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG