Suspects Arrested for Stealing $400 Million in Cryptocurrency from FTX
U.S. authorities have uncovered a major SIM-swap scheme, charging a Chicago resident and his accomplices with stealing over $400 million in cryptocurrency. More than 50 victims, including an unnamed company, were affected by these attacks. Cybersecurity experts believe that the company in question was the controversial crypto exchange FTX.
Details of the SIM-Swap Attacks
Last week, Robert Powell, Carter Rohn, and Emily Hernandez were arrested on charges related to SIM-swap attacks carried out between 2021 and 2023. These attacks targeted over 50 victims across 13 U.S. states, resulting in the theft of hundreds of millions of dollars.
The suspects’ largest haul was the theft of over $400 million in cryptocurrency from an unnamed “Victim Company 1” on November 11-12, 2022. This coincided with FTX’s bankruptcy announcement and reports that an unknown hacker had stolen approximately $415 million in crypto from the exchange.
How the Theft Was Carried Out
According to the indictment, the criminals stole $400 million in cryptocurrency by swapping the SIM card of an AT&T customer. They impersonated the victim at a mobile store using a fake ID. The victim’s name is not disclosed in the documents and is referred to as “Victim 1.”
Investigative journalist Brian Krebs was the first to suggest a link between the accused and the FTX hack. His theory was supported by cybersecurity firm Elliptic, which stated that they were “not aware of any other crypto thefts of this scale on those dates.”
Possible Connections to Organized Crime
Elliptic experts note that it is still unclear whether Powell and his accomplices stole the funds from FTX themselves or acted on behalf of a third party. Some evidence suggests that the group may be connected to organized cybercriminal groups from Eastern Europe and Russia. In October 2023, Elliptic released a report indicating that the stolen FTX funds were laundered through exchanges linked to such criminal organizations.
Additionally, Bloomberg, citing unnamed sources familiar with the case, reported that it also received confirmation that “Victim Company 1” mentioned in court documents is indeed FTX.