FTX After the stock exchange filed for bankruptcy in November 2022, three people stole the stock market’s assets worth over $400 million. Details about the “sim swap” style fraud method emerged in this attack, which was meticulously investigated by US prosecutors. The fact that the attack in question came after the resignation of founder Sam Bankman-Fried triggered many public speculations.
SIM Swap Method Attracted Attention
Robert Powell, Emily Hernandez and Carter Rohn are accused of participating in a ring that ran a SIM swap-style scam targeting FTX and others for two years, the Justice Department said in a statement.
Based in Illinois, Colorado, and Indiana, respectively, the trio managed to collect the personal data of approximately 50 victims by convincing cell phone providers to transfer the victims’ phone numbers to their control. In this way, they gained access to victims’ financial accounts and crypto wallets by intercepting text messages, including multi-factor authentication codes.
As we reported as Koinfinans.com, a similar attack method has been tried in Turkey before, and some influencers even claimed that their assets were stolen using this method. This was one of the important developments that once again highlighted the importance of personal wallets.
Although FTX is not specifically named in the indictment, people familiar with the case confirmed it was “victim firm-1” in court filings. The exchange’s weak security has made it an attractive target for SIM swapping attacks.
Regulators Continue to Closely Monitor FTX Case
The latest bankruptcy filing of the stock exchange, and therefore the company, brought security vulnerabilities to light. This is one of the most recent developments that has raised concerns about regulatory risks surrounding stablecoin issuers. JPMorgan analysts highlighted Tether’s risk, citing transparency and compliance issues. However, Tether officials tried to reassure the public by harshly criticizing this risk statement.
The exchange continues to reassure customers and creditors that their funds will potentially be fully recovered, provided they can prove their losses. Compensation plan, from November 2022 cryptocurrency It includes the evaluation of unit prices. However, the exchange recently attracted attention by announcing that it had no plans to restart operations.
FTX’s native token, FTT, experienced volatility following the announcement. While it initially rose over 11%, it fell by 15%. However, it was frequently reported in the media that the exchange detailed more than 36,000 compensation claims, totaling over $16 billion. Although it was previously thought that there would be problems with repayments, the new authorities assure that all payments will be made.