Another AT&T SIM Swapping Hack Targets Trio of Crypto Execs

A crypto executive is suing AT&T over a SIM swapping hack that he claims cost him $1.7 million in digital assets in a hit aimed at three executives attending Consensus 2018.

Head of strategy for VideoCoin Seth Shapiro alleged in his lawsuit, filed Oct. 17 in U.S. District Court for the Central District of California, that the cell carrier granted hackers repeated access to his SIM card in May 2018, allowing them to clear out his wallets on 11 exchanges worth over $1.8 million dollars.

In the almost cinematic 58-page complaint, Shapiro lays out an elaborate web of inside men, internal conspiracy and back-to-back SIM swaps that have already landed at least two former AT&T employees in criminal court.

"By utilizing their control over Mr. Shapiro's AT&T cell phone number-and the control of additional accounts secured through that number by utilizing two factor authentication-these third-party hackers were able to access Mr. Shapiro's accounts on various cryptocurrency exchange platforms, including the accounts he controlled on behalf of his business venture. The hackers then transferred Mr. Shapiro's currency from Mr. Shapiro's accounts into accounts that they controlled. In all, they stole more than $1.8 million from Mr. Shapiro in the two consecutive SIM swap attacks on May 16, 2018.".

Shapiro, Kitze and Terpin are members of Pro Top Company Services, in Tortola, British Virgin Islands, advertising crypto investment funds.

This nine-member company mirrors a second BVI-registered organization, Alphabit Fund, with only seven members, which excludes Shapiro and another executive, their business development representative in Japan.

On the day of the theft, Shapiro's VideoCoin announced the completion of a $50 million initial coin offering entirely through private investment, rather than the typical public sale.

In his account to investigators, Shapiro said he was targeted on May 16, 2018, while attending CoinDesk's annual Consensus conference in New York.

Shapiro purchased a new phone and SIM card at the AT&T salesperson's recommendation.

Ilvebtc had breached Shapiro's Bittrex account.