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SIM Swap Scam to Blame for $400M FTX Hack as Attackers Are Charged

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SIM Swap Scam to Blame for $400M FTX Hack as Attackers Are Charged


Briefly, the Department of Justice has brought charges against three individuals in connection with a SIM-swapping heist that took more than $400 million from the FTX exchange in November 2022.
The SIM trade assault included collecting individual information of around 50 casualties to catch validation codes and access monetary records.
In 2022, the FBI documented over 2,000 SIM-swapping complaints and $71 million in losses; genuine figures are possible higher.


The secret behind the monstrous hack of Sam Bankman-Broiled’s FTX trade soon after it sought financial protection has been addressed. Three individuals have been charged by the US Branch of Equity for organizing a SIM-trading trick that brought about the robbery of more than $400 million from FTX in November 2022.

The triplet were blamed for partaking in a SIM-trading ring that designated FTX and others north of two years.



SIM Swap Trio Charged

The DoJ has charged Robert Powell of Illinois, Emily Hernandez of Colorado, and Carter Rohn of Indiana, as per a February 2 Bloomberg report. They were charged by the authorities with identity theft and fraud.

Not long after the firm sought financial protection, programmers depleted more than $400 million in crypto. Following that, they directed it through a network of decentralized exchanges.

After stepping down as CEO, Sam Bankman-Fried (SBF) maintained his distance from the hack but speculated that it might have been an inside job. SBF was found guilty of fraud late last year, and as of right now, he faces decades behind bars.

As indicated by the prosecution, the aggressors reaped the individual information of around 50 casualties. This was used to persuade carriers to transfer the victims’ phone numbers to a fake phone they had in their possession.

They were able to get into financial accounts and crypto wallets, including FTX’s, by intercepting authentication codes.

SIM swapping involves influencing representatives of phone companies to transfer the phone numbers of targets to the hackers. Hackers who target cryptocurrency exchanges are increasingly turning to this strategy.

Hernandez utilized a phony ID with a FTX representative’s subtleties to persuade AT&T to move the cell phone record to another SIM card, as per the report. Powell then, at that point, utilized different confirmation codes to get to FTX’s crypto wallets, it added.

In the past, AT&T was sued for facilitating SIM swap attacks that led to crypto thefts.









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Attacks on the Rise

That’s what the report uncovered,

“The FBI got 2,056 SIM-trading protests, with misfortunes adding up to $71.6 million, up from 1,611 grievances and $68 million in misfortunes the prior year.”

This attack vector has affected even the SEC. In January, a SIM trade assault happened on the grounds that programmers took advantage of remiss security to hack its X record.

Besides, the social profit stage has been a magnet for phishing and SIM-trading assaults.

Perhaps of the biggest hole in the business, equipment wallet Record’s server hack in 2020, started off a deluge of SIM trade assaults focusing on casualties.


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