An indictment has revealed that three Americans may be linked to the theft of US$400 million from FTX, the cryptocurrency exchange that declared bankruptcy in November 2022.
Initially, suspicions were directed towards insiders at FTX, including the then CEO, Sam Bankman-Fried, who is now convicted of fraud.
However, evidence from blockchain analysis over the past year indicated external involvement.
Sim swapping in play
The US Department of Justice has charged Robert Powell, Carter Rohn and Emily Hernandez, allegedly part of the “Powell SIM Swapping Crew,” with this massive cyber theft.
They are accused of using SIM swaps to facilitate unauthorised access to victims' accounts, leading to the substantial loss of virtual currency from a company, presumed to be FTX, based on the timing of the events.
Elliptic, a blockchain analysis firm, supported the connection between this indictment and the FTX theft, citing the absence of similar scale thefts during the specified timeframe.
The indictment provides insight into the methods used by the accused, including SIM swapping facilitated by a fake ID to gain access to authentication codes.
Stolen assets may have been laundered
This development is unexpected, considering previous speculations about Russia-linked money launderers being behind the theft.
Despite these revelations, it remains uncertain whether the stolen assets can be recovered, as they may have been transferred to international launderers.
This case sheds light on a significant aspect of the FTX saga, indicating that the heist may not be attributed to Sam Bankman-Fried, but rather to a sophisticated cybercriminal operation within the United States.