Coinfeeds Daily → $400M FTX Hack Linked To SIM Swap Attack, Feds Charge Trio

$400M FTX Hack Linked To SIM Swap Attack, Feds Charge Trio

Published: Feb 02, 2024 | Last Updated: Feb 02, 2024
Howard Kane
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Three accused of executing a SIM swap attack on bankrupt exchange FTX, leading to one of the largest crypto thefts.

In a significant development in the world of cryptocurrency and cybersecurity, three individuals have been charged in connection with a massive $400 million hack. The hack, which targeted the now-bankrupt cryptocurrency exchange FTX, is believed to be one of the largest in the history of digital currency theft.

The Heist: A High-Tech SIM Swap Attack

According to U.S. prosecutors, the trio—Robert Powell, Carter Rohn, and Emily Hernandez—executed a sophisticated SIM swap attack. This type of cybercrime involves deceiving telecom providers into porting a victim's phone number to a SIM card controlled by the attackers. Once in possession of the victim's phone number, the criminals can intercept two-factor authentication messages and gain unauthorized access to sensitive accounts, including cryptocurrency wallets.

FTX's Vulnerable Moment

The timing of the attack was particularly opportune for the criminals, as it occurred just hours after FTX filed for bankruptcy. The indictment suggests that the exchange, referred to as 'Victim Company-1', was already in a vulnerable state, making it a prime target for the hackers. The security breach led to the unauthorized transfer of $400 million worth of cryptocurrency from FTX's wallets.

The Investigation and Charges

Blockchain security firm Elliptic, along with a report from Bloomberg, have identified FTX as the likely victim of the heist. The investigation has revealed that the theft took place between November 11 and 12, 2022. The three Americans charged with the crime are now facing serious legal repercussions for their actions.

Possible International Involvement

There are also emerging reports that suggest the involvement of Russian cybercriminals in laundering the stolen funds. This international angle adds another layer of complexity to the case, highlighting the borderless nature of cybercrime and the challenges faced by law enforcement agencies in tackling such issues.

Takeaways

This incident serves as a stark reminder of the importance of cybersecurity, especially in the realm of cryptocurrency. Individuals and businesses alike should be vigilant about safeguarding their digital assets. Enhanced security measures, such as using hardware authentication devices and being cautious about sharing personal information, can help mitigate the risk of falling victim to SIM swap attacks and other forms of cybercrime.

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