Grand Jury Indicts Hackers Accused of Stealing $400 Million from FTX Cryptocurrency Exchange
Three individuals have been indicted by a grand jury for their alleged involvement in a sophisticated hacking scheme that resulted in the theft of $400 million from the cryptocurrency exchange FTX. The hackers, identified as Robert Powell, Carter Rohn, and Emily Hernandez, are facing charges of conspiracy to commit wire fraud, aggravated identity theft, and access device fraud.
According to prosecutors, the hackers carried out a series of SIM swapping attacks between March 2021 and April 2023. SIM swapping is a cyberattack method where the attacker convinces a mobile carrier to transfer a victim’s phone number to a different SIM card under their control. This allows them to bypass two-factor authentication and gain access to the victim’s online accounts.
Although the court document does not explicitly mention FTX or its founder Sam Bankman-Fried, a Bloomberg report confirms that FTX is the victim referred to as “Victim Company-1”. The report states that Emily Hernandez used a fake ID to convince AT&T to transfer an FTX employee’s mobile phone account to another SIM card. Robert Powell, who is believed to be the ringleader of the group, then used authentication codes to access FTX’s crypto wallets.
The indictment mentions the transfer of over $400 million in virtual currency from Victim Company-1’s wallets to wallets controlled by the hackers on November 11th and 12th, 2022. This aligns with the date FTX experienced a significant security breach, resulting in the theft of over $650 million in total.
The stolen funds were moved across multiple virtual currency wallets, and the hackers used various tactics to hide their tracks. However, blockchain detectives and FTX’s general counsel, Ryne Miller, raised suspicions about unusual wallet movements during the incident.
Sim jacking, or SIM swapping, has become a prevalent method used by hackers to gain unauthorized access to individuals’ accounts. It involves manipulating telecom carriers and exploiting weaknesses in the mobile phone system. This case highlights the need for increased security measures to protect against such attacks.
Law enforcement agencies, along with FTX and other cryptocurrency exchanges, continue their efforts to investigate and recover the stolen funds. The indictment of these three individuals represents a significant step towards holding the hackers accountable for their actions.
This ongoing case serves as a reminder of the potential risks associated with the growing prominence of cryptocurrencies and the importance of robust cybersecurity measures within the industry.