Introduction to the Case
The Department of Justice has taken a significant step in tracking down stolen Bitcoin, tracing a complex path of transactions from hijacked phones to an online casino. According to a press release by the U.S. Attorney’s Office, District of Columbia, a civil forfeiture action has been initiated against a cryptocurrency wallet containing 117 BTC.
The Complaint
The complaint alleges that the funds in the wallet are the proceeds of a series of SIM swap attacks that targeted five victims between October 2022 and March 2023. The total value of the stolen Bitcoin is approximately $5 million. U.S. Attorney Jeanine Ferris Pirro stated that the perpetrators moved the Bitcoin through a maze of digital wallets before consolidating the entire haul into a single address.
The SIM Swap Scheme
The SIM swap scheme unfolded with perpetrators using SIM swap attacks to bypass standard security measures and gain control of victims’ mobile numbers. With the stolen numbers, they intercepted two-factor authentication codes that allowed them to log in to the victims’ crypto wallets and transfer assets into accounts under their control.
Money Laundering Attempts
The perpetrators attempted to obscure the origin of the funds by repeatedly cycling the bitcoin through deposits and withdrawals at the online casino Stake.com. Many of these transactions were circular, eventually returning funds to their original source, and consistent with money laundering utilized to “clean” proceeds of criminal activity.
Prosecution of the Case
The high-profile case is being prosecuted by Trial Attorneys Jessica Peck and Gaelin Bernstein of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS), alongside Assistant U.S. Attorneys for the District of Columbia. The case highlights the ongoing efforts of law enforcement to combat cryptocurrency-related crime and track down illicit funds.
Conclusion
The case demonstrates the complex nature of cryptocurrency-related crime and the efforts of law enforcement to track down and prosecute perpetrators. As the use of cryptocurrency continues to grow, it is essential for users to remain vigilant and take necessary security measures to protect their assets. For the latest updates on this case and other cryptocurrency news, visit bitpulse.