T-Mobile hit with the $33 million SIM swap award for Crypto theft

T-Mobile was ordered to pay $33 million after the Arbitration Commission was liable for “many security obstacles” and allowed for SIM swaps that led to theft of Crypto.

Cryptographic theft via SIM swap leads to T-Mobile’s $33 million loss

Law firm Greenberg Grasker shared that it received a $33 million arbitration award against T-Mobile on March 20, calling it a key milestone in retaining a telecom carrier responsible for SIM swap-related cryptocurrency theft. The Los Angeles arbitration took place in the fall of 2023 and included 12 days of testimony. According to Greenberg Glusker, the Arbitration Commission found that T-Mobile is responsible for “a number of security obstacles that allow for SIM swap attacks that lead to cryptocurrency theft.”

The final amount paid in full by T-Mobile included more than $6.5 million in attorneys’ fees, interest and expenses. Greenberg Grasker filed a petition with 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 importance of the outcome. “We are accused of the Greenberg Graskers of the past,” said Pierce O’Donnell, a lawyer with Greenberg Graskers who led the cross-examination during the arbitration.

This is the biggest known SIM swap-related award for records and a huge win for mobile phone consumers.

The company highlighted that the litigation team that acknowledged O’Donnell, Paul Blechner, James Molen and Eric Sefton revealed that T-Mobile had been unable to address known vulnerabilities for a long time.

Blechner, who investigated key witnesses, including the head of the SIM swap, said: “This was a huge outcome for clients and phone users everywhere. SIM swapping was a security flaw that has not been checked for years. Carriers like T-Mobile have failed to take basic precautions. This award makes that clear.”

Mohren added that the evidence contradicts T-Mobile’s repeated attempts to deny liability. “T-Mobile tried to do all sorts of arguments to avoid liability, but the fact is that T-Mobile was unable to take the reasonable steps necessary to fix vulnerable customers and protect vulnerable customers.”

Despite the results, Greenberg Glusker reported that T-Mobile was trying to prevent public access to the arbitration investigation results. Mohren spoke on behalf of the company and criticized the efforts.

The $33 million award is currently open, but T-Mobile is moving to seal the arbitrator’s findings, blocking access to details of security obstacles.

The law firm said it believes consumers have a right to know about the risks that these security gaps exist. Blechner, who represents Greenberg Glusker, details how SIM swaps occur. “If an unauthorized SIM swap occurs, your phone will be stopped from the network. During this period, carriers are redirecting your calls and texts to phones controlled by bad actors.”