The Department of Justice (DOJ) has taken decisive action by charging three individuals allegedly involved in a sophisticated SIM-swapping scheme that specifically targeted the now-defunct cryptocurrency exchange FTX. This intricate plot resulted in the unlawful extraction of more than $400 million from the beleaguered exchange. The orchestrated attack unfolded during a critical period for FTX, as it grappled with financial instability, ultimately culminating in the filing for bankruptcy in November 2022 and the resignation of its founder, Sam Bankman-Fried. The charges shed light on the severity of the cybercrime, revealing a strategic effort to exploit vulnerabilities in FTX’s security measures during a tumultuous phase for the cryptocurrency exchange.
China has intensified its efforts to curb the illegal use of cryptocurrencies by corrupt officials and criminals. The country’s central bank declared all crypto transactions illegal, and the police arrested 93 members of a group that allegedly laundered up to $5.6 billion using virtual currencies. The crackdown aims to protect the safety of people’s assets and maintain financial stability in China.