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US Justice Department Seeks Forfeiture of $5 Million in Bitcoin From SIM Swap Attacks

US Justice Department Seeks Forfeiture of $5 Million in Bitcoin From SIM Swap Attacks

The DOJ’s complaint ties stolen Bitcoin to SIM swap scams funneled through online casinos, highlighting a broader crackdown as crypto fraud losses surge nationwide.

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Fact Check
The statement is directly confirmed by a primary source, a press release on the U.S. Department of Justice's official website (justice.gov). This is strongly corroborated by multiple secondary news sources (The Record, SC Media, JD Supra) which all report on the same civil forfeiture action for over $5 million in Bitcoin stolen through SIM swapping attacks.
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Summary

The U.S. Department of Justice filed a civil forfeiture complaint to seize more than $5 million in Bitcoin allegedly stolen through SIM swap attacks between October 2022 and March 2023. Prosecutors say criminals compromised victims’ phone numbers to bypass authentication and steal funds, which were then laundered through multiple wallets and consolidated into an account at Stake.com casino. Investigators recorded at least 32 laundering transactions in March 2023. The action comes amid rising crypto fraud, with FBI data showing a 66% year-on-year increase in losses to $9.3 billion in 2024. The DOJ also reported a record $225.3 million seizure of Tether linked to pig butchering scams, reflecting a wider crackdown on transnational crypto crime networks.

Terms & Concepts
  • SIM Swap Attack: A cybercrime technique where attackers take control of a victim’s phone number to intercept messages and gain access to accounts, including cryptocurrency wallets.
  • Civil Forfeiture: A legal process where authorities seize assets suspected of being connected to criminal activity, even without a criminal conviction.
  • Bitcoin: The first and largest cryptocurrency, operating on a decentralized blockchain network, often targeted in cybercrime due to its digital nature.