Crypto Exchange FTX Linked to $400 Million Theft in Federal Indictment

Crypto Exchange FTX Linked to $400 Million Theft in Federal Indictment

Crypto News – In a recent federal indictment, Sam Bankman-Fried‘s crypto exchange FTX, was not explicitly named as the victim of a significant theft. However, Bloomberg reported that it was indeed the target.

The U.S. federal government has charged three individuals with a long-running phone hacking conspiracy. This scheme ultimately led to the notorious theft of $400 million from FTX, coinciding with the collapse of the cryptocurrency exchange.

According to an 18-page indictment filed in a D.C. court, prosecutors have accused Robert Powell, Carter Rohn, and Emily Hernandez of conspiracy to commit wire fraud and identity theft. They operated a SIM swapping ring that targeted fifty victims between March 2021 and April 2023.

The most notable incident occurred on November 11, 2022, when the trio siphoned $400 million from an unnamed company. Bloomberg, citing sources familiar with the case, identified this company as FTX.

Their modus operandi involved gaining access to an employee of the crypto exchange through AT&T, enabling them to transfer hundreds of millions of dollars’ worth of cryptocurrency.

These charges shed light on one of the most perplexing questions surrounding the FTX saga: the disappearance of hundreds of millions of dollars in cryptocurrency during the exchange’s tumultuous period, right after it filed for bankruptcy protection.