DOJ Wants to Take $5M in Bitcoin Connected to SIM-Swap Attacks
Summary
The US Department of Justice has filed a civil forfeiture action seeking roughly $5 million in Bitcoin that prosecutors say was stolen via SIM‑swap attacks between October 2022 and March 2023. Attackers allegedly hijacked five victims’ mobile numbers to intercept two‑factor authentication codes, accessed crypto wallets and routed the funds through multiple wallets and an account tied to Stake.com to obscure the trail. The case is part of a broader DOJ push against crypto‑enabled cybercrime, following prior seizures and convictions related to digital asset fraud.
Key Points
- DOJ initiated civil forfeiture for about $5 million in Bitcoin linked to SIM‑swap thefts affecting five individuals.
- Criminals reportedly took control of victims’ phone numbers to intercept 2FA codes and access crypto wallets.
- Funds were moved through numerous transfers and a gambling site account (wallet tied to Stake.com) to launder proceeds.
- The action is handled by the DOJ’s Computer Crime and Intellectual Property Section and the US Attorney’s Office for D.C.
- The DOJ highlighted its broader efforts recovering hundreds of millions for fraud victims and securing over 180 convictions since 2020.
- The FBI reported a 66% rise in digital asset crime losses in 2024 — more than $9 billion — with SIM‑swapping a rapidly growing attack vector.
- Legal experts warn crypto holders who lack hardware wallets or strong account protections (PINs with carriers, robust 2FA) are at heightened risk.
Why should I read this?
Quick and dirty: the DOJ is seizing crypto tied to phone‑hijack thefts that ended up at an online casino. If you hold crypto, work in compliance, or run an online gambling service, this shows two things — SIM‑swaps are still wrecking people, and authorities are getting serious about clawing back laundered digital assets. Read this so you don’t get caught out or miss how enforcement is evolving.