FTX faced massive cryptocurrency losses of $400 million due to SIM swap attack, DOJ said.

• FTX cryptocurrency exchange suffered $400 million in losses following a sophisticated SIM swap attack.
• The Department of Justice (DOJ) indictment reveals details of a two-year hacking scheme targeting FTX.

FTX cryptocurrency heist solved with sophisticated SIM swap scheme

In a recent revelation, the U.S. Department of Justice (DOJ) revealed a missing cryptocurrency exchange. FTX It suffered a loss of over $400 million in cryptocurrency. The significant breach resulted from a sophisticated SIM swap attack orchestrated by three individuals, according to an indictment filed in federal court in Washington.

Three people at the center of the attack

The DOJ identified Robert Powell, Emily Hernandez, and Carter Rohn as key participants in a SIM swap ring that targeted FTX over a two-year period. The scheme involved collecting personal information from numerous victims, which they used to persuade cell phone providers to transfer the victims’ phone numbers to a fraud device controlled by the attackers. This allowed the group to intercept text messages containing multi-factor authentication codes, which are critical to account security.

Infiltration tactics revealed by indictment

Court documents referred to the victim company as ‘Victim Company-1’, but sources familiar with the case confirmed it was related to cryptocurrency exchange FTX. According to the indictment, on Nov. 11, 2022, Emily Hernandez fake id It contains details of an FTX employee trying to convince AT&T to transfer his phone account to a different SIM card.

Robert Powell, known online by his online aliases ‘R$’ and ‘ElSwapo1’, then tried various authentication codes to gain unauthorized access to FTX’s cryptocurrency wallet.

FTX’s turmoil continues after bankruptcy

The shocking revelations came at a time when FTX was already experiencing financial turmoil. In November 2022, the cryptocurrency exchange made headlines when it filed for Chapter 11 bankruptcy, revealing an $8 billion shortfall in its accounts. FTX founder Sam Bankman-Fried now faces serious legal repercussions, with the possibility of up to 100 years in prison on multiple charges related to the cryptocurrency crisis.

Also Read: The Rise and Fall of FTX: The Crypto Exchange’s Dramatic Journey