DOJ Charges Three People Responsible for FTX Hack
A recent report has shed light on the individuals who may be responsible for the hack on the now-defunct FTX exchange. The Department of Justice (DOJ) has charged Robert Powell, Emily Hernandez, and Carter Rohn for their involvement in a SIM-swapping ring that targeted FTX and other individuals. While the court documents did not explicitly mention FTX as the hacked exchange, sources familiar with the case confirmed it was indeed FTX. The hackers gained access to FTX’s wallets by sim-swapping an employee’s details. After the hack, they funneled the stolen funds through decentralized exchanges to cover their tracks.
Crypto Exchange Faces Lawsuit from Disgruntled Creditors
Sunil Kavuri, a creditor of FTX, revealed that he and other customers have filed a lawsuit seeking fair recovery and damages. This comes after FTX announced its repayment plan, which would repay customers based on crypto prices as of November 2022 when the exchange filed for bankruptcy. However, US bankruptcy law mandates that debts be repaid based on their value at the time of filing, so customers are unlikely to be fully compensated based on current crypto prices. Therefore, they hope to receive damages as restitution to return them to their pre-hack financial state.
Hot Take: Hackers Expose Vulnerability in Crypto Exchanges
The recent hack on FTX highlights the ongoing vulnerability of crypto exchanges to hacking attacks. SIM-swapping has become a common method used by hackers to gain unauthorized access to accounts and steal funds. In this case, the hackers targeted an FTX employee’s details to gain access to the exchange’s wallets and drain over $400 million worth of crypto. This incident serves as a reminder for individuals and exchanges to prioritize security measures and implement robust safeguards to protect against such attacks. As the crypto industry continues to grow, it is crucial to stay vigilant and take proactive steps to ensure the safety of funds and personal information.
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