DOJ charges trio for $400 million SIM-swapping hack targeting FTX

The Department of Justice charged three individuals for stealing over $400 million from one company, which appears to be the collapsed FTX exchange, by coordinating a SIM-swapping attack, according to an indictment filed to a federal court last week.

The three individuals — Robert Powell, Emily Hernandez and Carter Rohn — carried out SIM-swapping scams targeting multiple victims, from March 2021 through April 2023, according to the indictment submitted to the U.S. District Court for the Northern District of Illinois. The indictment did not disclose the name of the exchange, but Bloomberg reported today, citing two sources familiar with the matter, that FTX is one of the victims, listed as Victim Company-1 in the filing. 

Prosecutors charged the three with conspiracy to commit wire fraud and identity theft, according to the indictment.

“A SIM swap attack refers to the process of fraudulently inducing a carrier to reassign a cell phone number from the legitimate subscriber or user’s SIM card to a SIM card controlled by a criminal actor,” the indictment said.

According to the filing, the perpetrators gained access to an FTX employee’s ATT account by using fraudulent identities, subsequently unlocking FTX’s online accounts and allegedly stealing $400 million worth of cryptocurrency.

FTX filed for Chapter 11 bankruptcy in November 2022 after a slew of accusations pointed to profiteering from client funds by executives. Its founder and former chief executive officer Sam Bankman-Fried was found guilty of defrauding FTX investors last year, and is facing decades in prison.