Exposed: Hackers Involved in $400 Million FTX Breach Face DOJ Charges

A recent report sheds light on the individuals allegedly behind the massive hack on the now-defunct FTX exchange, where over $400 million in crypto was drained following FTX's bankruptcy filing. The Department of Justice (DOJ) has charged Robert Powell, Emily Hernandez, and Carter Rohn, linking them to a SIM-swapping ring that targeted the crypto exchange and other individuals. While court documents did not explicitly mention FTX, credible sources confirm the exchange's involvement.

SIM-Swapping Tactics Unveiled

The hackers reportedly gained access to FTX's wallets by executing a SIM-swap attack on an FTX employee. This method involves manipulating a target's mobile service provider to transfer their phone number to a new SIM card under the attacker's control. Following the breach, the perpetrators swiftly moved over $400 million through decentralized exchanges (DEXs) and converted some tokens to obscure their trail.

Rising Trend of SIM-Swap Attacks

SIM-swap attacks have become increasingly common in the cryptocurrency space, impacting notable figures like Ethereum co-founder Vitalik Buterin and the Dogecoin wallet MyDogeWallet. These incidents highlight the vulnerability associated with this form of cybercrime.

FTT Token struggles amid exchange's woes | Source: FTTUSDT on Tradingview.com

FTX Creditor Lawsuit and Repayment Challenges

FTX creditors, including Sunil Kavuri, have filed an adversary lawsuit seeking fair recovery and damages. FTX's proposed repayment plan, based on crypto prices as of November 2022, has drawn discontent among customers. US Bankruptcy Judge John Dorsey clarified that he cannot overrule the proposed plan due to bankruptcy laws. Creditors hope to obtain damages as a form of restitution, aiming to return to their financial state before FTX's negligence caused them losses.

The lawsuit adds another layer to the aftermath of the FTX breach, bringing legal challenges and uncertainties around customer repayment. As the DOJ charges the alleged hackers, the broader implications for FTX and its customers remain to be seen.