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Re:

SIM-Swap Victim Alleged T-Mobile Failed to Stop a $20,000 Cryptocurrency Theft

Sima Kesler alleged fraudsters took over her T-Mobile account and stole cryptocurrency. The court docket records an arbitration referral and later dismissal, not a finding of liability.
From TheFinanceBase Team2 min to read
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A Pennsylvania woman alleged that fraudsters took over her T-Mobile account and used it to drain nearly $20,000 in cryptocurrency from her Coinbase account. The allegation was reported in 2021; the federal docket later records that her claims were sent to binding arbitration and the court case was dismissed with prejudice. That docket does not establish that a court found T-Mobile responsible or reveal the arbitration’s outcome.

What is a SIM swap?

A SIM swap is an unauthorized takeover of a wireless account that redirects calls, texts, or data traffic intended for the subscriber’s phone to a device controlled by someone else. The U.S. Attorney’s Office for the District of Maryland used that definition in an October 2021 announcement about a separate criminal case. That prosecution illustrates how redirected phone access can help perpetrators reach email and financial accounts; it is not evidence about Kesler’s alleged incident or T-Mobile’s conduct in her case. DOJ description of the separate case.

How did the alleged SIM swap lead to cryptocurrency theft?

According to Jeff Stone’s June 4, 2021 CyberScoop report on Sima Kesler’s complaint, her phone stopped working at about 8 p.m. on May 2, 2020. By 9:12 p.m., she had received an email from Coinbase saying that someone had changed her password. The complaint alleged that unknown fraudsters had gained control of her T-Mobile account and used that access to deplete virtually all the cryptocurrency in her Coinbase account. These are allegations described in the report, not findings that a court made about what happened. CyberScoop’s report.

The complaint argued that T-Mobile failed to protect customer data despite prior attention to SIM swapping. CyberScoop reported that the company did not immediately respond to the reporter’s request for comment at publication time; that is not a statement of T-Mobile’s position in the later arbitration proceedings.

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What happened to the $20,000 in cryptocurrency?

CyberScoop reported the alleged stolen cryptocurrency was worth roughly $20,000 when taken. It also reported that the suit valued it at more than $65,000 when filed on June 2, 2021. The latter is the historical value asserted at filing, not a current valuation or an independently verified calculation. The reviewed docket does not say whether Kesler recovered any cryptocurrency or received compensation.

Did the lawsuit establish that T-Mobile was responsible?

No merits finding of T-Mobile’s responsibility is established by the reviewed docket listing. The action, Kesler v. T-Mobile USA, Inc., No. 2:2021cv02516, was filed in the U.S. District Court for the Eastern District of Pennsylvania on June 2, 2021. The docket records that on August 24, 2021, the court ordered Kesler to submit her claims to binding arbitration under the terms of the order and stayed the court action pending arbitration. On September 15, 2022, the action was dismissed with prejudice pursuant to Local Rule 41.1(b). Docket listing for Kesler v. T-Mobile USA, Inc.

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The dismissal with prejudice describes the court action’s disposition; the docket listing does not establish an arbitration award, a settlement, a recovery, or a judicial decision on the truth of the complaint’s allegations. Its report was last retrieved September 15, 2022.

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