Three Charged in $400 Million FTX Hack Amid Exchange's Bankruptcy Crisis
U.S. authorities have charged three individuals in connection with a sophisticated $400 million theft from the FTX cryptocurrency exchange, coinciding with its financial collapse and bankruptcy filing
U.S. officials have charged three people with stealing $400 million from FTX, a digital currency trading platform, in November 2022. The identities of these individuals are still hidden. They reportedly used a technique called sim-swapping to illegally access FTX's funds.
Sim-swapping is a fraud where scammers convince a phone company to switch a victim's phone number to a new SIM card they control. This allows them to bypass security steps that use text message codes, gaining unauthorized entry into secure accounts. This crime occurred as FTX was facing severe financial difficulties and had to file for bankruptcy. FTX and 130 associated entities could not return money to their customers, leading to a financial crisis because they mishandled customer funds. FTX's founder, Sam Bankman-Fried, has been found guilty of fraud and awaits sentencing, which could be up to 115 years in prison, scheduled for March 28, 2024.
