The Department of Justice accused three hackers of executing a SIM-swapping scam that siphoned more than $400 million in crypto assets from the crumbling FTX">FTX exchange as it filed bankruptcy last November.
Hours after FTX founder Sam Bankman-Fried resigned, attackers allegedly used stolen employee info and SIM swap tricks to intercept 2FA codes and breach FTX wallets – before funnelling funds through decentralized exchanges.
Charged in the ploy were alleged ringleaders Robert Powell, Emily Hernandez, and Carter Rohn – who stand accused of stealing identities and hijacking phone numbers of around 50 victims over 2 years. Prosecutors tie the group to FTX’s “victim company-1,” cited in court filings.
SIM-swapping schemes rely more on social engineering and telecom manipulation versus sophisticated technical intrusion. However, the attacks have surged in stealing from crypto platforms, social media, and banking apps as authentication relies heavily on mobile access.
While the collapse of FTX still cites gross internal mismanagement as the catalyst, its hot wallet vulnerabilities allegedly allowed opportunistic SIM hackers to capitalize on institutional crypto’s biggest implosion with huge breach payouts.
