The US Department of Justice (DOJ) has started a civil forfeiture action to take over $5 million in Bitcoin that investigators believe thieves stole through planned SIM-swap attacks on cryptocurrency owners across the country.
SIM-Swap Hackers Accused of Laundering Millions in Bitcoin via Casino Accounts
Federal prosecutors claim the thefts happened between October 2022 and March 2023 when cybercriminals took control of the mobile numbers of five victims. By grabbing these numbers, the attackers could intercept two-factor authentication codes and get into digital wallets. The thieves then moved the stolen cryptocurrency through several accounts before sending it to a wallet linked to Stake.com, an online gambling site, reported Law.com.
Court documents show the criminals made many back-and-forth transfers between wallets and the casino account. They did this to hide where the Bitcoin came from. Prosecutors said this pattern of deposits and withdrawals looked like common money laundering tricks to make dirty money seem clean.
US Attorney Jeanine Ferris Pirro announced the complaint. She stressed that this case shows the government’s dedication to finding digital fraud. Officials pointed out that since 2020, the Justice Department’s cybercrime team has helped give back hundreds of millions of dollars to fraud victims. They have also gotten over 180 convictions related to online theft.
FBI Reports 66% Spike in Digital Asset Crime Losses in 2024
Legal experts say the case shows ongoing flaws in mobile security systems. A lawyer who focuses on getting assets back said crypto investors who do not use safety measures like hardware wallets, two-factor login, and PIN protection with their phone company put themselves at big risk.
The DOJ filed this case as part of a bigger federal effort to stop cybercrime groups using the crypto world. Earlier this year, the department took over $225 million in Tether linked to a huge global investment scam. Other recent actions include taking money from ransomware groups, charging people for crypto investment fraud, and putting sanctions on foreign groups accused of running digital asset scams.
Experts say SIM–swapping has become one of the quickest-growing tactics criminals use to break into accounts. The FBI reports that crypto-related crimes led to over $9 billion in losses in 2024, jumping 66% from the year before. A big chunk of these losses had a link to investment scams and account hacks similar to the cases now under federal scrutiny.
The Justice Department’s Computer Crime and Intellectual Property Section, along with lawyers from the US Attorney’s Office for the District of Columbia, are looking into the Bitcoin case.