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A bitcoin trader has sued telecommunications big AT&T for $224 million just after losing hundreds of thousands of bucks really worth of cryptocurrency in a theft that he suggests is the mobile support provider’s fault.

According to CNBC, California resident Michael Terpin has filed a 69-webpage complaint from AT&T in U.S. District Court docket in Los Angeles, in which he alleges that he lost $24 million really worth of cryptocurrency just after the mobile support company negligently authorized a hacker to receive unauthorized entry to his cell cellphone account.

Terpin, who in 2013 co-founded an angel investment decision group referred to as BitAngels and was also a founding partner of the Dapps Undertaking Fund, statements that an individual functioning with the hacker impersonated him and certain an AT&T shop employee to give them entry to Terpin’s cellphone amount without the need of requiring him to demonstrate legitimate identification or deliver the PIN code to Terpin’s account.

“AT&T’s ready cooperation with the hacker, gross negligence, violation of its statutory duties, and failure to adhere to its commitments in its Privateness Policy,” he reported in the complaint. “What AT&T did was like a resort offering a thief with a faux ID a room critical and a critical to the room secure to steal jewelry in the secure from the rightful proprietor.”

In addition to the $24 million he lost in the two thefts, Terpin is in search of $200 million in punitive damages from AT&T, which is the world’s greatest telecommunications company and the next-greatest mobile solutions company.

AT&T reported that it disputes the allegations and “look ahead to presenting our situation in courtroom.”

In any situation, the incident offers a different reminder of the potential risks of SMS-dependent two-component authentication (2FA), which — although typically safer than not utilizing 2FA at all — continue to areas buyers at risk of SIM-card jacking assaults, in which an attacker tricks a mobile company into transferring the victim’s mobile account to a hacker-controlled cellphone.

When available, stability experts advise that buyers secure their online accounts utilizing app- and stability critical-dependent 2FA, although unfortunately several websites do not guidance them. Cryptocurrency traders need to also consider securing their prolonged-time period holdings in offline “cold storage” wallets, which reduce hackers from acquiring entry to the private keys about the world wide web.

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