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The Department of Justice (DOJ) has revealed that FTX, a cryptocurrency exchange that filed for bankruptcy in November 2022, fell victim to a SIM-swapping scam that drained over $400 million from its coffers. This happened shortly after FTX’s founder, <a href="https://news.todayq.com/heres-why-ftx-claims-price-is-up/" target="_blank" rel="noopener noreferrer nofollow">Sam Bankman-Fried</a>, resigned, leaving the platform in turmoil. Who were the people behind the sim-swap? 
Culprits behind this heist have been identified as Robert Powell from Illinois, Emily Hernandez from Colorado, and Carter Rohn from Indiana. The three individuals are said to have worked together in a SIM-swapping group that went after both FTX and many people for two years. This method doesn’t need advanced hacking abilities. It relies mainly on the manipulation or bribing of telecom customer service representatives.
The legal document, submitted to the <a href="https://news.todayq.com/federal-court-case-uses-blockchain-tech-to-fight-russian-and-north-korean-hackers/" target="_blank" rel="noopener noreferrer nofollow">federal court </a>in Washington, says that Powell, Rohn, and Hernandez collected personal information of around 50 people. With this data, they convinced cell phone providers to transfer the victims’ phone numbers to a dummy device under their control. By doing so, the perpetrators could intercept text messages, including multi-factor authentication codes, enabling them to breach the victims’ financial accounts and crypto wallets. How did they carry out the process? 
FTX, referred to as “victim company-1” in court filings, faced lax security measures, as highlighted by the company’s new CEO after assuming the role. The heist occurred around November 11, 2022, when Hernandez allegedly used a fake ID with an FTX employee’s details to persuade AT&amp;T to transfer the mobile phone account to another SIM card. Powell, identified as the alleged ringleader using online aliases ‘R$’ and ‘ElSwapo1’, then utilized various authentication codes to access FTX’s <a href="https://news.todayq.com/trezor-launches-hardware-crypto-wallets-amid-surging-crypto-scams/" target="_blank" rel="noopener noreferrer nofollow">crypto wallets</a>.
SIM-swapping has become a common way for hackers to break into social media, emails, cryptocurrency accounts, and online banking. This method doesn’t need advanced technical skills but depends on tricking or bribing phone company staff.&nbsp;
The FBI recorded 2,056 SIM-swapping complaints in 2022, with reported losses totaling $71.6 million. An increase from the previous year which was 1,611 complaints and $68 million in losses, indicates a growing trend in this form of cybercrime. Experts suggest that the actual figures are likely higher than reported. Charges against Hernandez, Powell, and Rohn include fraud and identity theft. Powell’s attorney, Gal Pissetzky, declined to comment, while attempts to reach Hernandez and Rohn were unsuccessful.
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SIM-swapping scam cost FTX $400M, Three charged by DOJ

Todayq News

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