T-Mobile was ordered to pay $33 million after an arbitration panel found it liable for “numerous security failures” enabling a SIM swap that led to crypto theft.
Crypto Theft via SIM Swap Leads to $33 Million Loss for T-Mobile
Law firm Greenberg Glusker shared on March 20 that it had obtained a $33 million arbitration award against T-Mobile, calling the result a critical milestone in holding telecom carriers accountable for SIM swap-related cryptocurrency theft. The Los Angeles arbitration took place in Fall 2023 and involved 12 days of testimony. According to Greenberg Glusker, the arbitration panel found T-Mobile liable for “its numerous security failures that enabled a SIM swap attack leading to the theft of cryptocurrency.”
The final amount, which T-Mobile paid in full, also included more than $6.5 million in attorneys’ fees, interest, and costs. Greenberg Glusker has filed a petition in Los Angeles Superior Court to confirm the award and bring public attention to the details of the case. The law firm highlighted both the size and significance of the result. Greenberg Glusker attorney Pierce O’Donnell, who led cross-examinations during the arbitration, stated
This is the largest known SIM swap-related award on record and a significant victory for cell phone consumers.
The firm emphasized that its litigation team—comprised of O’Donnell, Paul Blechner, James Molen, and Eric Sefton—demonstrated how T-Mobile had long failed to address known vulnerabilities.
Blechner, who examined key witnesses including the attacker responsible for the SIM swap, stated: “This was a great result for our client, and for phone users everywhere. SIM swapping has been an unchecked security flaw for years. Carriers like T-Mobile have known about it and failed to take basic precautions. This award makes it clear: they must do better.”
Molen added that the evidence contradicted T-Mobile’s repeated attempts to disclaim responsibility: “T-Mobile tried every argument to avoid responsibility, but the facts told a different story—T-Mobile failed to take the reasonable steps necessary to fix its porous security system and to protect its vulnerable customers.”
Despite the outcome, Greenberg Glusker reported that T-Mobile is now attempting to prevent public access to the arbitration findings. Molen, speaking on behalf of the firm, criticized the effort:
While the $33 million award is now public, T-Mobile has moved to seal the arbitrator’s findings, blocking access to details of its security failures.
The law firm said it believes consumers have a right to know about the risks these security gaps present. Blechner, also representing Greenberg Glusker, detailed how SIM swaps can occur: “When the unauthorized SIM swap occurs, your phone is shut off from the network. During this period, the carriers are redirecting your calls and texts to a phone controlled by the bad actor.”
How to keep your assets safe from crypto theft
Keeping your crypto assets safe from theft requires a combination of strong security practices, awareness of threats, and the right tools. Here’s a comprehensive guide to protecting your cryptocurrencies:
1. Use a Secure Wallet
- Hardware Wallets (Cold Storage):
- Ledger, Trezor, and Coldcard are among the most secure options.
- Store private keys offline, making them immune to online hacks.
- Software Wallets (Hot Wallets):
- Use reputable wallets like Exodus, Trust Wallet, or MetaMask (for Ethereum).
- Avoid keeping large amounts in hot wallets.
- Paper Wallets:
- Generate keys offline and store them securely (fireproof/waterproof safe).
2. Protect Private Keys & Seed Phrases
- Never share your private keys or recovery phrases.
- Store seed phrases securely:
- Use metal backups (e.g., Cryptosteel, Billfodl) to protect against fire/water damage.
- Avoid storing them digitally (no screenshots, cloud storage, or emails).
- Use multi-signature (Multisig) wallets for extra security (e.g., Gnosis Safe).
3. Enable Two-Factor Authentication (2FA)
- Use an authenticator app (Google Authenticator, Authy) instead of SMS-based 2FA.
- Avoid SIM-swapping attacks by using a hardware security key (YubiKey).
4. Beware of Phishing & Scams
- Verify URLs: Always check website addresses before entering credentials.
- Avoid clicking links in emails/DMs—manually type exchange URLs.
- Use a password manager to avoid fake sites.
- Double-check contract addresses before interacting with DeFi protocols.
5. Secure Your Devices
- Use antivirus & firewall protection (Malwarebytes, Bitdefender).
- Keep software & firmware updated (OS, wallets, Ledger/Trezor).
- Avoid public Wi-Fi for crypto transactions; use a VPN if necessary.
6. Smart Contract & DeFi Risks
- Audit smart contracts before interacting (check CertiK, PeckShield reports).
- Use revoke.cash to revoke unnecessary token approvals.
- Avoid “too good to be true” yields—many DeFi scams promise high APYs.
7. Exchange Safety
- Withdraw funds to self-custody wallets—don’t leave large amounts on exchanges.
- Use exchanges with strong security (Coinbase, Kraken, Binance with 2FA).
- Beware of fake support agents—official support won’t DM you first.
8. Additional Measures
- Diversify storage (split funds across multiple wallets).
- Use privacy coins or mixers cautiously (regulators may flag suspicious activity).
- Stay informed about new scams (follow security experts on Twitter/X).
What to Do If Hacked?
- Immediately move remaining funds to a new wallet.
- Report the theft to exchanges (they may freeze stolen funds).
- Check blockchain explorers (Etherscan, Blockchain.com) to track stolen crypto.
Final Tip:
“Not your keys, not your crypto.” Self-custody on Animalverse socialFi is the safest option, but it requires strict security habits.
Would you like recommendations tailored to a specific cryptocurrency or wallet type?
Reference : Bitcoin.com News
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