Three Charged with $400 Million Hack Linked to FTX
Three individuals have been charged with orchestrating a massive $400 million hack that is reportedly connected to the failed cryptocurrency exchange FTX. A grand jury has charged Robert Powell, Carter Rohn, and Emily Hernandez with two counts of conspiracy to commit wire fraud, aggravated identity theft, and access device fraud. These charges stem from nearly two years of SIM swapping crimes carried out between March 2021 and April 2023.
FTX Not Named in Court Document
The court document cited by ArsTechnica does not explicitly mention FTX or its founder Sam Bankman-Fried. Instead, it refers to the company as “Victim Company-1.” However, a recent report by Bloomberg confirms that Victim Company-1 is indeed FTX, citing unnamed sources.
Hernandez Used Fake ID to Access FTX Account
In November 2022, Hernandez allegedly used a fake ID with an FTX employee’s details to convince AT&T to transfer the mobile phone account to another SIM card. Powell, who is believed to be the ringleader of the group, then used authentication codes to access FTX’s crypto wallets.
$400 Million Transferred from FTX Wallets
The indictment lists several targets, including one entry suggesting that the hack targeted FTX on the same day the company filed for Chapter 11 bankruptcy in late 2022. Prosecutors stated that over $400 million in virtual currency was transferred from FTX’s wallets to wallets controlled by the co-conspirators.
Sim Swapping: A Cyberattack Method
Sim swapping, also known as sim jacking, is a type of cyberattack where hackers take over someone’s phone number by convincing carrier customer support workers to transfer it to a different SIM card. This allows hackers to bypass two-factor authentication and gain access to the victim’s online accounts, including bank accounts, social media accounts, and email accounts.
Hot Take: Massive Hack Exposes Vulnerabilities in Crypto Exchanges
The recent $400 million hack linked to FTX highlights the vulnerabilities that exist within the crypto industry. This incident, involving SIM swapping and identity theft, demonstrates the need for stronger security measures to protect users’ funds and personal information. It serves as a reminder that even well-known exchanges are not immune to cyberattacks. As the popularity of cryptocurrencies continues to grow, it is crucial for individuals and companies to remain vigilant and take proactive steps to safeguard their assets. Additionally, regulatory bodies should work towards establishing comprehensive guidelines to prevent such incidents and hold those responsible accountable.
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