FTX Mystery Theft Solved? US Charges Trio With $400 Million SIM-Swapping Hack

The mystery surrounding the infamous $400 million theft from FTX, a cryptocurrency exchange, has been potentially solved. The U.S. federal government has charged three individuals with a phone hacking conspiracy that led to the theft.

What Happened: The U.S. government has charged Robert Powell, Carter Rohn, and Emily Hernandez with a phone hacking conspiracy that resulted in the theft of $400 million from FTX as the exchange was facing collapse, reported CoinDesk on Friday. The trio was charged with conspiracy to commit wire fraud and identity theft for their involvement in a SIM-swapping ring that targeted fifty victims between March 2021 and April 2023.

The most significant theft occurred on Nov. 11, 2022, when the trio siphoned $400 million from an unnamed company, which Bloomberg sources claim was FTX.

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The individuals gained access to an FTX employee through AT&T and transferred hundreds of millions of dollars worth of cryptocurrency. These charges provide a potential explanation for the disappearance of hundreds of millions of dollars in crypto during FTX’s bankruptcy protection filing.

Why It Matters: The charges come in the wake of FTX’s commitment to fully compensate customers and creditors who can validate their losses. The commitment was made during a court hearing in Wilmington, Delaware, where FTX’s lawyer, Andrew Dietderich, highlighted the need to review the numerous claims filed against the exchange thoroughly.

These charges also follow Larry David who was featured in a Super Bowl ad for FTX. It aired just months before the bankruptcy of the cryptocurrency platform. David said he lost money and is now facing a lawsuit for misleading investors.

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