DOJ Pursues $5 Million Bitcoin Stolen Through SIM Swap Attacks
The Department of Justice (DOJ) has launched a civil forfeiture action to reclaim $5 million worth of Bitcoin that was stolen through a series of SIM swap attacks.
The DOJ complaint targets a cryptocurrency wallet holding 117 BTC allegedly tied to illicit activities. According to U.S. Attorney Jeanine Ferris Pirro, the stolen funds moved through various digital wallets before landing in a single address linked to an online casino named Stake.com.
The attacks impacted five U.S. citizens between October 2022 and March 2023. The thieves used SIM swap techniques to intercept two-factor authentication codes, enabling them to access the victims’ crypto wallets.
To confuse investigators, the criminals cycling the stolen Bitcoin through deposits and withdrawals at the casino, creating circular transactions.
- Perpetrators controlled victims’ mobile numbers
- Funds deposited and withdrawn from Stake.com
- Attempts to disguise stolen funds as legitimate income
“These circular transactions were intended to ‘clean’ the stolen funds,” said the DOJ. The case is being handled by DOJ Trial attorneys Jessica Peck and Gaelin Bernstein,along with D.C. Assistant U.S. Attorneys.
