Crypto Hacker Receives 5-Year Prison Sentence After $794,000 SIM Swap Scam
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In a recent case that highlights the ongoing issue of SIM swap scams in the cryptocurrency industry, British hacker Joseph O'Connor, also known as the PlugwalkJoe, has been sentenced to five years in a United States prison. O'Connor was found guilty of orchestrating a SIM swap attack, through which he stole $794,000 worth of cryptocurrencies.
The SIM swap attack occurred in 2019 when O'Connor and his co-conspirators targeted a crypto exchange executive. By gaining unauthorized access to the executive's accounts and computer systems, they successfully executed the attack, diverting approximately $794,000 worth of cryptocurrencies at the time. This amount has now appreciated to over $1.6 million.
Following the theft, O'Connor and his accomplices employed various techniques to launder the stolen cryptocurrency. They utilized transfers and transactions, exchanged some of the funds for bitcoin through cryptocurrency exchange services, and deposited a portion of the stolen funds into a crypto exchange account under O'Connor's control.
The United States Attorney's Office for the Southern District of New York announced O'Connor's prison sentence on June 23. In addition to the five-year term, he will be subject to three years of supervised release and has been ordered to pay $794,012.64 in forfeiture.
It is worth noting that O'Connor's criminal activities extended beyond the SIM swap attack. He pleaded guilty to multiple charges related to the major Twitter hack in July 2020, in which he and his crew compromised around 130 prominent Twitter, TikTok, and Snapchat accounts. Their social engineering techniques and SIM swap attacks allowed them to defraud users or sell access to the compromised accounts.
O'Connor's additional charges include blackmailing victims on Snapchat, stalking and threatening individuals, and orchestrating swatting attacks. These actions involved falsely reporting emergencies to authorities or sending threatening messages to the families of his victims.
While O'Connor's crimes date back a few years, SIM swap attacks remain a persistent concern within the cryptocurrency sector. These attacks involve gaining control of a victim's phone number by linking it to a SIM card controlled by the attacker. This enables the attacker to reroute calls and messages, bypassing SMS-based two-factor authentication and gaining access to the victim's accounts.
The case of Joseph O'Connor serves as a reminder of the importance of robust security measures within the cryptocurrency industry. Users should be vigilant and take precautions to protect their personal information and assets from such fraudulent activities, including implementing stronger authentication methods and being cautious of any suspicious requests or messages they receive.
As authorities continue to crack down on cybercriminals involved in cryptocurrency-related scams, it is hoped that such legal actions will act as a deterrent and contribute to a safer and more secure environment for cryptocurrency users and investors.
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