With the hacking incident gradually becoming clear, it seems that the possibility of FTX founder SBF and other executives embezzling has been ruled out.
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Justice Department dismantles SIM Swapping theft group
Victims may include FTX employees
Analytical institutions: Almost certain it is FTX hackers
SIM card swapping attack (SIM Swapping)
Justice Department dismantles SIM Swapping theft group
According to the indictment by the Justice Department, a large-scale online theft group has been prosecuted, and the persons involved in the case, including Emily Hernandez, Robert Powell, and Carter Rohn, have all been arrested.
The Justice Department explicitly stated that the theft group used SIM card swapping attacks.
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What is even more concerning is that the indictment alleges that this group stole $400 million in virtual currency from a company referred to as “victim company 1” on November 11, 2022, and the entire process lasted until the 12th.
This also coincides with the timing of FTX’s reported unidentified fund transfers and suspected hackers. The victims of SIM card swapping attacks may include FTX employees.
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Victims may include FTX employees
According to the details of the crime described by the prosecutor in the indictment, Robert Powell asked Emily Hernandez to carry out a SIM card swapping attack on a specific phone number.
Emily Hernandez then forged a fake ID card with her photo, but with the name of the victim (possibly an FTX employee). She presented the ID card at an AT&T retail store in Texas and requested the transfer of the victim’s phone number.
Analytical institutions: Almost certain it is FTX hackers
Blockchain analytics company Elliptic confirmed the possibility that this group is the FTX hackers.
In a special article on February 1, Elliptic stated:
During these dates, we did not come across similar-scale thefts in the crypto field, so we believe that FTX is very likely the institution referred to as “victim company 1” in the indictment.
This group may have chosen to take action during the extreme chaos of FTX. As the incident gradually becomes clear, it seems that the possibility of FTX founder SBF and other executives embezzling has been ruled out.
SIM card swapping attack (SIM Swapping)
“SIM card swapping attack” is also commonly referred to as SIM card swapping fraud. Criminals usually collect personal information of specific targets and then, after deceiving telecom service personnel, transfer (copy) the target user’s phone number to a SIM card they control.
This is equivalent to having control of the “user’s phone” and is usually used to access financial accounts and cryptocurrency wallets. However, this is not common in Taiwan.
The SEC and Ethereum founder Vitalik Buterin have both fallen victim to it.
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Vitalik: Twitter hack was a “SIM card swapping attack,” has strengthened security measures for various apps
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FTX
SIM Swapping
SIM card swapping attack
Further reading
SEC confirms Twitter account was subjected to SIM card swapping attack, has restarted multi-factor authentication
Vitalik: Twitter hack was a “SIM card swapping attack,” has strengthened security measures for various apps