The U.S. Department of Justice has filed a civil forfeiture complaint seeking to seize more than $5 million in Bitcoin allegedly stolen through SIM swap attacks that targeted victims across the country.
U.S. Attorney Jeanine Ferris Pirro announced the action, joined by Acting Assistant Attorney General Matthew R. Galeotti of the Criminal Division and FBI Special Agent in Charge Brett D. Skiles of the Miami Field Office.
Stolen Funds from SIM Swap Scams Traced to Online Casino Wallets
According to the complaint, the funds are directly traceable to cryptocurrency thefts from five victims whose wallets were compromised between October 29, 2022, and March 21, 2023.
The perpetrators allegedly used SIM swapping, a technique that exploits weaknesses in mobile authentication systems to gain control of a victim’s phone number.
Once in control, the attackers intercepted two-factor authentication codes, posed as the victim, and transferred funds into accounts they controlled.
Investigators said that after each theft, the stolen assets were moved through several cryptocurrency wallets before being consolidated into one wallet that funded an account at Stake.com, an online casino.
Prosecutors allege that the perpetrators engaged in circular transactions, repeatedly moving Bitcoin in and out of accounts to disguise the source of funds.
Between March 20 and March 22, 2023, the Stake.com account and a connected wallet allegedly conducted at least 32 such transactions, consistent with efforts to launder criminal proceeds.
SIM swapping has become a recurring threat in the cryptocurrency sector. Just this June, two users of the exchange OKX reported losses in a SIM swap hack that followed a fraudulent SMS notification claiming to be from the platform.
According to SlowMist founder Yu Xian, the attackers tricked victims into generating new API keys with withdrawal and trading permissions, allowing unauthorized access. The incident came only a week after cybercriminals used deepfake videos to target the exchange’s security checks.
OKX confirmed the hack in a statement on X, saying it had contacted the affected users and launched an investigation.
The company pledged to take responsibility if it was found to be at fault and to publish findings when available. The exchange has not yet disclosed the amount stolen or the precise method of compromise.
Similar incidents have hit the wider crypto industry. In October 2023, Friend.tech users suffered roughly $400,000 in losses from SIM swap scams, prompting the platform to add a two-factor password safeguard for customers.
A SIM swap attack occurs when fraudsters convince mobile carriers to transfer a victim’s phone number to a new SIM card under their control.
With access to the number, hackers can intercept sensitive codes sent via text, bypassing protections on email, financial, and cryptocurrency accounts.
Law enforcement officials say the method has become a preferred tool for cybercriminals seeking to exploit gaps in mobile security for high-value digital thefts.
Wider DOJ Crackdown on Crypto Crime Networks as Crypto Fraud Losses Surge 66% Year-on-Year
Recently, the DOJ seized $225.3 million worth of Tether’s USDT, representing the largest cryptocurrency seizure tied to an alleged “pig butchering” investment scam. Officials say the operation is part of a widening crackdown on crypto fraud that has already cost victims billions.
@DOJCrimDiv seizes $225.3M in Tether’s USDT—largest crypto haul tied to pig butchering scam—funds traced via OKX in global fraud network.#CryptoFraud #USDThttps://t.co/0q6GUi99SZ
— Cryptonews.com (@cryptonews) June 18, 2025
According to the DOJ, investigators traced the funds through a series of blockchain transactions connecting them to an international confidence scheme. The stolen assets were laundered through the exchange OKX before being consolidated into wallets holding USDT.
Additionally, authorities say cryptocurrency fraud is rising at an alarming rate. The FBI’s Internet Crime Complaint Center reported a 66% increase in losses from 2023 to 2024. The FBI estimates that more than $9.3 billion in crypto-related losses were reported in 2024, with $5.8 billion tied to fraudulent investment schemes.
Victims were drawn in by what appeared to be legitimate crypto opportunities but ultimately lost savings to organized fraud rings. Many officials noted that they were older adults targeted online. The DOJ said the scale of losses “compounds the devastating impact” on people and families.
The DOJ emphasized that the seizure is part of a wider push to disrupt transnational criminal groups exploiting digital assets. Federal prosecutors announced guilty pleas in a $36 million laundering case linked to Cambodia-based scams and secured forfeitures in separate cases worth millions of dollars.
U.S. Treasury sanctions 19 Myanmar, Cambodia entities for crypto scams that defrauded Americans of over $10B through forced labor.#Crypto #Scamhttps://t.co/SanmDSbFAu
— Cryptonews.com (@cryptonews) September 9, 2025
Other recent DOJ crackdowns include charges against blockchain entrepreneur Jeremy Jordan-Jones, accused of defrauding investors of $1 million; Russian national Rustam Gallyamov, allegedly behind the Qakbot malware and linked to $24 million in seized crypto; and Charles Parks III, sentenced for a $3.5 million “cryptojacking” scheme.
In July, U.S. officials filed a forfeiture complaint seeking $2.4 million in Bitcoin tied to the Chaos ransomware group. Also, earlier this year, the DOJ seized $31 million from the Uranium Finance hack.
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