A Years-long FTX SIM Swap Scheme
Three individuals, Robert Powell, Carter Rohn, and Emily Hernandez, have been charged with conspiracy to commit wire fraud and conspiracy to commit aggravated identity theft for a years-long FTX SIM swapping scheme. This scheme lasted from March 2021 to April 2023.
SIM swap attacks occur when fraudsters trick a victim’s cell phone carrier by reassigning a phone number from one device to another, allowing them to bypass multi-factor authentication and access personal data.
The goal of the trio was to enrich themselves by targeting victims for SIM swaps, creating fraudulent identification documents, performing SIM swaps for money, stealing money and data from victims, and concealing the source of the stolen money.
Unveiling “Victim Company-1”
The indictment reveals that the co-conspirators transferred over $400 million in virtual currency from a corporation labeled as “Victim Company-1” to virtual wallets under their control on or about November 11, 2022.
According to a newly released Bloomberg report, FTX is indeed “Victim Company-1.” FTX filed for bankruptcy in November 2022 amid allegations of misappropriating customer funds.
Nearly $70 Million Stolen in FTX SIM Swap Attacks in 2021 Alone
In 2021 alone, nearly $70 million was stolen in FTX SIM swap attacks according to recent statistics from the FBI. The FBI received over 1,600 complaints of SIM swap attacks, resulting in adjusted losses of more than $68 million.
It is unclear whether the three indicted individuals were involved in the theft and laundering of crypto assets or only facilitated initial access to the victim company’s online accounts. Recovery of the stolen assets is uncertain.
Hot Take: U.S. Government Charges Trio Responsible for FTX’s Missing $400 Million
New court filings reveal that three individuals have been charged with stealing over $400 million worth of digital currency from FTX in a SIM swapping attack. The scheme lasted for several years, targeting victims and using fraudulent identification documents to perform SIM swaps. The stolen funds were transferred to virtual wallets controlled by the defendants. FTX, which filed for bankruptcy amid allegations of misappropriating customer funds, is identified as “Victim Company-1” in the indictment. This case highlights the ongoing threat of SIM swap attacks and the need for enhanced security measures to protect against such fraud.
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