TLDR
- DOJ seeks $5M Bitcoin tied to SIM swap thefts across five U.S. victims.
- Stolen Bitcoin laundered via Stake.com with 32 traced circular transfers.
- DOJ has secured 180 cybercrime convictions and returned $350M since 2020.
- FBI reports crypto fraud losses of $9B in 2024 affecting nearly 200,000.
The U.S. Department of Justice filed a civil complaint to seize more than $5 million in Bitcoin. Prosecutors allege the funds were stolen through SIM swapping attacks and laundered using online casinos. The case highlights challenges faced by authorities in tracking cryptocurrency used in cybercrime and financial fraud.
SIM Swapping and Account Takeovers
According to the complaint, between October 2022 and March 2023, five individuals were targeted by cybercriminals. The attackers convinced telecom providers to transfer the victims’ phone numbers to SIM cards under their control.
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With this access, the attackers intercepted authentication codes and reset account credentials. This method enabled unauthorized entry into cryptocurrency wallets. Once inside, the perpetrators transferred digital assets to wallets they controlled, moving the stolen Bitcoin through several addresses to conceal its path.
Laundering Through Online Casinos
The DOJ reported that stolen Bitcoin was moved into online gambling accounts, including Stake.com. Prosecutors described the laundering process as involving frequent deposits and withdrawals that masked the true origin of the funds.
Investigators identified at least 32 circular transactions during March 2023. These transactions moved Bitcoin in and out of gambling accounts in short intervals. Authorities allege this was done to disguise ownership and complicate recovery efforts.
Officials noted that cryptocurrency gambling platforms present challenges for regulators. The use of digital assets on these platforms creates opportunities for cybercriminals seeking to obscure transactions.
Federal Investigation and Charges
The investigation was led by the DOJ’s Computer Crime and Intellectual Property Section with prosecutors in Washington D.C. and support from the FBI Miami Field Office. Blockchain analytics tools were used to trace stolen funds across wallets and identify laundering activity.
According to the DOJ, the stolen funds are directly linked to unauthorized transfers from cryptocurrency accounts. A statement from the complaint noted: “The perpetrators of these thefts utilized a SIM swapping technique that allowed authentication of unauthorized access to cryptocurrency accounts.”
Prosecutors detailed how the stolen Bitcoin was repeatedly cycled between wallets before being deposited into casino accounts. These movements made it more difficult to establish clear transaction trails.
DOJ’s Wider Effort Against Crypto Crime
This action fits into the DOJ’s broader strategy against cryptocurrency-related fraud and cybercrime. Since 2020, the department has secured over 180 convictions and returned more than $350 million to victims.
Brett D. Skiles, Special Agent in Charge of the FBI Miami Field Office, stated that this case reflects wider challenges. He noted that cybercrime groups are increasingly using cryptocurrency and gambling sites to hide illicit funds.
According to the FBI, cryptocurrency-related fraud has grown rapidly. In 2024, nearly 200,000 victims reported losses exceeding $9 billion. Authorities expect enforcement actions to continue as digital assets become more integrated into financial systems.
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