Trio Indicted For $400 Million FTX Hack And Identity Theft Scheme

Key Points:

• Trio was charged with a sophisticated sim-swapping scheme during a $400 million FTX hack in November 2022.
• Charged with wire fraud, the suspects exploited over 50 victims through sim-swapping.

According to CNBC, three individuals have been charged in connection with a sophisticated identity-theft conspiracy linked to the $400 million hack of the FTX cryptocurrency exchange in November 2022, coinciding with the exchange’s Chapter 11 bankruptcy filing.

Trio Indicted in $400 Million FTX Hack and Identity-Theft Conspiracy

According to court records, Robert Powell, the alleged ringleader of the SIM swapping group, along with Carter Rohn and Emily Hernandez, orchestrated a sim-swapping scheme targeting FTX.

Sim-swapping involves manipulating mobile carriers to transfer victims’ phone numbers to SIM cards controlled by attackers, granting unauthorized access.

FTX Hack Suspects Face Charges in Multi-State Identity Theft Operation

The indictment, issued in mid-January, reveals the trio’s activities from March 2021 to April 2023. The suspects, accused of wire fraud, aggravated identity theft, and access device fraud, exploited more than 50 victims. They allegedly created fake identification documents, impersonated victims, and accessed online, financial, and social media accounts for illicit gains.

During the FTX hack in November 2022, the exchange faced financial turmoil, filing for bankruptcy as it grappled with a collapse triggered by misappropriation of customer deposits. Founder Sam Bankman-Fried was recently found guilty of fraud and conspiracy, facing a potential 115-year prison term.

The indictment outlines a scheme involving over 15 states, where co-conspirators tricked phone companies into swapping Subscriber Identity Modules, enabling them to bypass multi-factor authentication and access victims’ accounts. The defendants are due for a Chicago federal court hearing.