The U.S. Department of Justice has filed a civil forfeiture complaint seeking to seize more than $5 million in Bitcoin allegedly stolen through SIM swap attacks that targeted victims across the country.
U.S. Attorney Jeanine Ferris Pirro announced the action, joined by Acting Assistant Attorney General Matthew R. Galeotti of the Criminal Division and FBI Special Agent in Charge Brett D. Skiles of the Miami Field Office.
The perpetrators allegedly used SIM swapping, a technique that exploits weaknesses in mobile authentication systems to gain control of a victim’s phone number. Once in control, the attackers intercepted two-factor authentication codes, posed as the victim, and transferred funds into accounts they controlled.
According to the complaint, the funds are directly traceable to cryptocurrency thefts from five victims whose wallets were compromised between October 29, 2022, and March 21, 2023.
SIM swapping has become a recurring threat in the cryptocurrency sector. Just this June, two users of the exchange OKX reported losses in a SIM swap hack that followed a fraudulent SMS notification claiming to be from the platform.
Between March 20 and March 22, 2023, the Stake.com account and a connected wallet allegedly conducted at least 32 such transactions, consistent with efforts to launder criminal proceeds.
A SIM swap attack occurs when fraudsters convince mobile carriers to transfer a victim’s phone number to a new SIM card under their control. With access to the number, hackers can intercept sensitive codes sent via text, bypassing protections on email, financial, and cryptocurrency accounts.
Similar incidents have hit the wider crypto industry. In October 2023, Friend.tech users suffered roughly $400,000 in losses from SIM swap scams, prompting the platform to add a two-factor password safeguard for customers.
Additionally, authorities say cryptocurrency fraud is rising at an alarming rate. The FBI’s Internet Crime Complaint Center reported a 66% increase in losses from 2023 to 2024. The FBI estimates that more than $9.3 billion in crypto-related losses were reported in 2024, with $5.8 billion tied to fraudulent investment schemes.
Recently, the DOJ seized $225.3 million worth of Tether’s USDT, representing the largest cryptocurrency seizure tied to an alleged “pig butchering” investment scam. Officials say the operation is part of a widening crackdown on crypto fraud that has already cost victims billions.
