News - This was the reason for the $400 million FTX hack

By Mike Hesp

This was the reason for the $400 million FTX hack

In November 2022, US$400 million disappeared from FTX. Three perpetrators have now been charged. Here's the background.

The U.S. Department of Justice DOJ has indicted three people for orchestrating a SIM swap fraud against FTX.

As Bloomberg reports, the perpetrators are three men from Illinois, Colorado and Indiana. Authorities charge them with fraud and identity theft.

According to the indictment, the attackers obtained the personal information of about 50 victims. The men then convinced mobile phone providers to transfer the victims' phone numbers to their property, the indictment continues.

"Swapping SIM cards does not require sophisticated hacking skills, but relies on psychological manipulation - or bribery - of telecom customer service agents," Bloomberg said.

Even the world's most powerful regulator was recently the victim of such a SIM card swapping attack. This resulted in a false report on the Bitcoin Spot ETF on the SEC's X account.

The attack by the three men led to a hack shortly after FTX's November 2022 bankruptcy, in which $400 million dollars disappeared. Using the stolen phone data, the perpetrators intercepted access keys to FTX's wallet, according to the story.

Founder Sam Bankman-Fried (SBF) was held responsible for the theft at the time. However, the fact that the ex-CEO had nothing to do with the hack will not mitigate his punishment. Indeed, SBF has already been found guilty on more than five charges - him hanging more than 100 years in prison overhead.

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