US DOJ Seeks $5M Bitcoin Forfeiture Linked to SIM Swap Scams

The U.S. Department of Justice has filed a civil forfeiture complaint seeking to recover over $5 million worth of bitcoin stolen through a series of SIM swap attacks targeting five victims between late 2022 and early 2023. The perpetrators gained control of victims' phone numbers by tricking mobile carriers, enabling them to intercept two-factor authentication codes and access cryptocurrency wallets. Stolen funds were laundered through multiple cryptocurrency wallets and ultimately consolidated into a single wallet that funded an online casino account at Stake.com, with circular transactions designed to obscure the illicit origin. This case highlights the DOJ's ongoing efforts to combat sophisticated cybercrime and protect digital assets, following similar recent actions involving large-scale cryptocurrency thefts and laundering schemes. Prosecutors emphasize the serious threat of SIM swapping as a means to bypass security measures and the importance of vigilance among cryptocurrency holders. The enforcement is led by the DOJ’s Computer Crime and Intellectual Property Section, supported by U.S. Attorneys and FBI agents.