FTX $400 million theft case truth revealed? Justice Department busts theft ring, FTX employees possibly victims

As the hacking incident becomes clearer, it seems that the possibility of executives such as SBF, the founder of FTX, being involved in self-theft can be ruled out.

DOJ Busts SIM Swapping Theft Group

According to the Department of Justice indictment, a large-scale online theft group has been charged, with individuals including Emily Hernandez, Robert Powell, and Carter Rohn, all currently in custody.

The DOJ specifically identified the theft group's use of SIM card swapping attacks.

Of greater concern is the indictment alleging that on November 11, 2022, the group stole $400 million in virtual currency from a "Victim Company 1," a process that lasted until the 12th.

This incident coincides with reports of unspecified fund transfers and suspected hackers targeting FTX, with victims of SIM card swapping potentially including FTX employees.

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Victims Likely FTX Employees

As described by prosecutors in the indictment details, Robert Powell instructed Emily Hernandez to conduct a SIM card swapping attack on a specific phone number.

Emily Hernandez then forged a fake ID with her photo but under the name of a possible FTX employee victim, presented it at an AT&T retail store in Texas, and requested the transfer of the victim's phone number.

Analysis Firm: Highly Likely FTX Hackers

Blockchain analysis company Elliptic confirmed the likelihood that this group is the FTX hackers.

In a statement on February 1st, Elliptic stated:

During these dates, we did not observe thefts of this scale in the crypto space, leading us to believe that FTX is likely the institution referred to as "Victim Company 1" in the indictment.

The group may have struck during FTX's extreme turmoil, and as events unfold, it seems unlikely that FTX founder SBF and other executives were involved in self-theft.

SIM Card Swapping Attack - SIM Swapping

"SIM card swapping attacks," also known as SIM card exchange fraud, typically involve gathering personal information about a specific target. Subsequently, after deceiving telecom service personnel, the criminals transfer the target user's phone number to a SIM card under their control.

This essentially gives them access to the user's phone, often used to access financial accounts and cryptocurrency wallets, a method not commonly seen in Taiwan.

Notable victims include the SEC and Ethereum founder Vitalik Buterin.

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