Investors have lost millions of dollars in cryptocurrency after cellular companies provided unauthorized access to the personal and financial information of holders of cryptocurrency.
If you have sustained losses in cryptocurrency as a result of a cellular or mobile phone company’s data or security breach, contact Levin Law, P.A. immediately. You may be able to recover your losses through a lawsuit or arbitration claim if your losses were caused by a company’s negligence. Our cryptocurrency lawsuit attorneys can help you understand your rights and your potential for recovery.
What Is Cryptocurrency?
Cryptocurrency is a digital currency secured through blockchain technology. The technology behind crypto is decentralized and creates an immutable ledger online of all transactions. However, since it is decentralized and relatively new to the market, crypto has little oversight from state or federal regulators.
Investors are at risk for fraud such as Ponzi-like schemes and may be vulnerable to digital hacking. While transactions utilizing blockchain technology are secure and difficult to change once entered into the ledger, the devices that are used to hold digital information may be prone to security and data breaches.
Common Types of Cryptocurrency
There are thousands of cryptocurrencies currently on the market, but only a small portion have made waves with investors. These digital investments range in value from fragments of a dollar to tens of thousands in the case of Bitcoin. It is important to note that the crypto market can fluctuate dramatically. Bitcoin, for example, lost nearly half of its value after peaking at over $60,000 in Spring 2021.
For many investors, cryptocurrency and digital investments are extremely speculative. Crypto exchanges have also been plagued by Ponzi schemes, deception, and other fraudulent activities. There is litigation occurring throughout the country alleging that investors were defrauded by companies claiming to be a safe platform for cryptocurrency transactions, only to result in millions of dollars in losses for victims.
Some of the most popular types of cryptocurrency include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Stellar (XLM)
- Binance Coin (BNB)
- Cardano (ADA)
- XRP (XRP)
- Dogecoin (DOGE)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Chainlink (LINK)
- Polkadot (DOT)
- Monero (XMR)
- USD Coin (USDC)
Cryptocurrency Sim Card Swap Hack
In a recent case, a T-Mobile customer suffered significant losses after the company allowed a hacker unauthorized access to their account multiple times. The company’s gross negligence in allowing the hacker to repeatedly infiltrate their security systems resulted in the loss of $8.7 million in cryptocurrency.
A year prior to the customer’s cryptocurrency losses, the Federal Trade Commission (FTC) had warned about the potential for fraud at cellular carriers, referred to as a SIM Card Swap Hack or SIM Swap Scam. Hackers, as in the T-Mobile case, use several strategies to overcome the cellular provider’s two-factor authentication security measures obtaining a new data-rich SIM card with all of the customer’s information.
The information is transferred by the cellular company to a device controlled by the hacker who then uses it to gain access to their personal and financial accounts. The outcome is generally a total loss of digital investments which are quickly transferred to the hacker’s account. Cellular companies who have taken no additional measures to protect their customers from fraud, must be held accountable.
Cryptocurrency Practice Areas
At Levin Law, P.A. we help those victimized by fraudulent crypto transactions and cryptocurrency theft recover their losses. We handle cases nationwide and have secured large recoveries on behalf of investors throughout the world.
Our cryptocurrency practice areas include but are not limited to:
- Anti-Money Laundering Safeguards and Procedures
- Asset Security
- Cryptocurrency Ponzi Schemes
- Decentralized Finance (DeFi) Compliance
- Distributed Denial of Service (DDoS) Attacks
- Financial Crimes Enforcement Network (FinCEN) Compliance
- Flash crashes
- Initial Decentralized Exchange Offerings (IDOs)
- Initial Coin Offering (ICO) Compliance
- Privacy and Data Security Breaches
Contact Levin Law Today for a Free Case Evaluation
Contact Levin Law, P.A. to discuss your case directly with a skilled cryptocurrency lawsuit attorney. Most cases are handled on a contingency fee basis, meaning that you do not pay Levin Law attorneys fees unless we recover money on your behalf. Call (305) 402-9050 to get started.
Levin Law managing partner Brian Levin has recovered millions on behalf of defrauded investors. He is an experienced litigator dedicated to providing first-class legal representation to clients across the globe.
