Crypto exchange FTX fell victim to a $400 million exploit following its bankruptcy filing in November 2022. More than a year later, United States prosecutors have identified and charged three individuals for orchestrating a series of sim-swap attacks.

The U.S. Department of Justice Washington, D.C. District Court prosecutors have charged Robert Powell, Emily Hernandez, and Carter Rohn with wire fraud conspiracy and identity theft. The three individuals were charged with carrying out SIM swap attacks by stealing 50 identities and convincing telecom providers to port victims’ numbers to their control. As a result, this has allowed them to access text messages, including multi-factor authentication codes, and gain access to victim’s financial accounts and crypto wallets.

The hackers drained over $400 million in crypto shortly after FTX filed for bankruptcy and then channeled it through a web of decentralized exchanges. SIM swapping involves manipulating telecom reps to transfer targets’ phone numbers to the hackers. This method has become popular among hackers targeting crypto exchanges. 

Sam Bankman-Fried, former CEO of FTX distanced himself from the hack but speculated that it could have been an inside job. The former CEO is currently facing decades in prison after his conviction for fraud late last year. 

Talking about SIM-swap attacks, even the SEC has been a victim of this attack. In January, a SIM swap attack occurred when hackers exploited lax security to hack SEC’s X account. The exploiters falsely posted from its account that spot BTC exchange-traded funds had been approved.  

FTX faced over 36,000 claims totaling around $16 billion with uncertainty that they’ll be able to pay back everyone. But despite what seems to be an endless challenge for FTX, they still believe that they now have enough money to pay all the valid claims from customers and creditors.