FTX $400 Million Theft Case Uncovered by Justice Department: FTX Employees Potentially Victims
As the hacker incident gradually becomes clear, it seems that the possibility of executives like FTX founder SBF stealing is ruled out.
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Department of Justice Busts SIM Swapping Theft Group
Victims Could be FTX Employees
Analysis Firm: Almost Certain it’s FTX Hackers
SIM Card Swapping Attack (SIM Swapping)
Department of Justice Busts SIM Swapping Theft Group
According to the Department of Justice indictment, a large-scale online theft group has been prosecuted, and the individuals involved, including Emily Hernandez, Robert Powell, and Carter Rohn, have all been arrested.
The Department of Justice explicitly states that the theft group used SIM card swapping attacks.
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What is even more concerning is that the indictment accuses the group of stealing $400 million worth of virtual currency from a company referred to as “Victim Company 1” on November 11, 2022, with the entire process lasting until the 12th.
This coincides with the reported time frame of unidentified fund transfers and suspected hackers at FTX, and the victims of SIM card swapping attacks may include FTX employees.
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FTX loses funds! Multiple Twitter celebrities warn of FTX App being hacked and funds being sold: Delete the app to prevent security risks
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Victims Could be FTX Employees
According to the details of the crime described by the prosecutors in the indictment, Robert Powell instructed Emily Hernandez to perform SIM card swapping attacks on specific phone numbers.
Emily Hernandez then forged a fake ID with her photo but using the victim’s name (possibly an FTX employee). She presented this ID at an AT&T retail store in Texas and requested the transfer of the victim’s phone number.
Analysis Firm: Almost Certain it’s FTX Hackers
Blockchain analysis company, Elliptic, confirmed the possibility that this group is the FTX hackers.
In a February 1st article, Elliptic stated:
During these dates, we did not come across any similar-scale theft in the cryptocurrency field. Therefore, we believe that FTX is likely the organization referred to as “Victim Company 1” in the indictment.
The group may have chosen to act during FTX’s extreme chaos. As the events gradually become clear, it seems that the possibility of FTX founder SBF and other executives being involved in self-theft can be ruled out.
SIM Card Swapping Attack (SIM Swapping)
SIM card swapping attacks are often referred to as SIM card swapping fraud. Criminals usually collect personal information of specific targets and then, after deceiving telecommunications company employees, transfer (copy) the target user’s phone number to a SIM card they control.
This is equivalent to having control over the user’s phone and is usually used to access financial accounts and cryptocurrency wallets, but it is not common in Taiwan.
Even the SEC and Ethereum founder Vitalik Buterin have fallen victim to it.
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Vitalik: Twitter Hack was “SIM Card Swapping Attack,” Has Strengthened Security Measures for Various Apps
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FTX
SIM Swapping
SIM Card Swapping Attack
Further Reading
SEC Confirms Twitter Account Hacked by SIM Card Swapping, Has Restarted Two-Factor Authentication
Vitalik: Twitter Hack was “SIM Card Swapping Attack,” Has Strengthened Security Measures for Various Apps
