The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint targeting over $5 million in Bitcoin (BTC) allegedly obtained through SIM swapping attacks against victims across the United States. Announced by U.S. Attorney Jeanine Ferris Pirro, the complaint details thefts occurring between October 29, 2022, and March 21, 2023, involving cryptocurrency stolen from five victims’ wallets.
As per the press release, the perpetrators used the SIM swapping technique to conduct the crime. This is a technique where criminals trick someone into assigning a victim’s phone number to a SIM card they control. This method allowed the fraudsters to receive security codes meant for the victim, which authorized them to break into the victim’s cryptocurrency accounts and steal the funds.
Further, the fraudsters transferred the stolen bitcoins to perpetrator-controlled wallets. The DOJ said the criminals pooled the stolen money into one wallet, which funded a Stake.com account. Between March 20 and 22, 2023, they moved the money around in at least 32 transactions, depositing and withdrawing it repeatedly. These “circular” transactions were designed to hide where the money came from, a common trick in money laundering to make stolen funds look legitimate by creating a confusing trail of activity.
The case is being prosecuted by Trial Attorneys Jessica Peck and Gaelin Bernstein of the Computer Crime and Intellectual Property Section (CCIPS), alongside Assistant U.S. Attorneys Kevin Rosenberg, Alexandra Hughes, and Asset Forfeiture Coordinator Rick Blaylock, Jr. from the District of Columbia.
The effort involves coordination with the FBI’s Miami Field Office, led by Special Agent in Charge Brett D. Skiles, and Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. Since 2020, CCIPS has convicted over 180 cybercriminals and secured court orders to return more than $350 million to victims, often collaborating with domestic and international law enforcement and private sector partners.
DOJ to Sell $6.5B Seized Silk Road Bitcoin After Court Ruling
The DOJ is consistently working towards managing Bitcoin-related crimes. It also recently cited the cryptocurrency’s price volatility as a key reason for seeking a prompt sale to mitigate risks from market fluctuations. A US federal judge on Dec 30 approved selling 69,370 seized Bitcoins ($6.5B) from the DOJ, ending ownership disputes over assets from the infamous Silk Road dark web site, known for drugs and hacking.
Also Read: Crypto Industry Lost Over $163M in Hacks Last Month: PeckShield
