Plaintiff Agrees to Arbitration With Coinbase, Verizon in SIM Swap Case

Parties in a November instant action involving an alleged SIM swap have consented to arbitration of Raymond Krumdieck’s claims, said their proposed stipulation Thursday (docket 1:23-cv-09556) in U.S. District Court for Southern New York in Manhattan. Krumdieck sued Coinbase and Verizon, alleging a hacker, with a Verizon store assistant manager's help, gained access to his financial accounts through a SIM card swap, stealing $300,000 from his cryptocurrency account (see 2311010018). The suit claims breach of contract; negligence; gross negligence; negligent hiring, retention and supervision; negligent infliction of emotional distress; and violations of the Federal Communications, New York Consumer Protection, and Computer Fraud and Abuse acts. Verizon argues the instant action is subject to mandatory arbitration under its customer agreement and requested the parties consent to arbitration for expediency and to avoid the costs of protracted litigation and motion practice. The parties will mutually agree on and select the arbitrator from the American Arbitration Association, and Verizon will reimburse Krumdieck for any filing fees charged by the AAA at the end of arbitration, regardless of the outcome, provided he “fully participates in the process,” it said.