Justice Department Files Civil Forfeiture Complaint for Over $5 Million in Bitcoin Stolen via SIM-Swap Attacks
On September 9, 2025, the U.S. Department of Justice (DOJ) announced the filing of a civil forfeiture complaint in the U.S. District Court for the District of Columbia, seeking to seize approximately 117 Bitcoin (valued at over $5 million) alleged to be proceeds from a series of SIM-swapping scams targeting cryptocurrency holders across the United States. The action, led by the DOJ’s Computer Crime and Intellectual Property Section (CCIPS), aims to recover funds stolen from five victims between October 2022 and March 2023, highlighting ongoing efforts to combat cyber-enabled thefts in the digital asset space.
U.S. Attorney for the District of Columbia Jeanine Ferris Pirro stated, “The Justice Department has filed a civil forfeiture complaint against over $5 million in bitcoin (BTC). The funds are alleged to be ill-gotten gains from multiple SIM swap attacks targeting victims across the United States.” Acting Assistant Attorney General Matthew R. Galeotti of the Criminal Division emphasized the case’s role in disrupting money laundering schemes tied to cyber fraud.
How the SIM-Swap Thefts Occurred
SIM-swapping, also known as SIM hijacking, is a form of identity theft where perpetrators exploit vulnerabilities in mobile carriers’ multi-factor authentication (MFA) systems. Criminals contact the victim’s phone provider, often posing as the victim using stolen personal information, to transfer the victim’s phone number to a SIM card controlled by the attacker. This allows them to intercept SMS-based authentication codes, emails, and calls, enabling unauthorized access to accounts.
In this case, the unnamed perpetrators targeted five victims’ cryptocurrency wallets, stealing and transferring funds without authorization. The thefts spanned from October 29, 2022, to March 21, 2023, with each incident involving the hijacking of the victim’s phone number to bypass MFA and drain their Bitcoin holdings. Once accessed, the stolen cryptocurrency was rapidly moved through a series of intermediary wallets to obscure its trail.
Money Laundering Through an Online Casino
Following the initial thefts, the perpetrators laundered the funds by consolidating them into a single wallet that funded an account at Stake.com, an online cryptocurrency casino. They engaged in circular transactions—depositing and withdrawing Bitcoin repeatedly—to create the illusion of legitimate gambling activity, thereby masking the illicit origins of the funds. This technique, common in crypto laundering, exploits the pseudonymous nature of blockchain transactions while simulating “business activity” to evade detection.
Investigators from the FBI and U.S. Secret Service used blockchain analysis to trace the funds back to the victims’ wallets, identifying the 117 BTC in the target wallet as directly linked to the scams. No arrests have been announced in connection with this specific complaint, which focuses on asset forfeiture rather than individual prosecutions at this stage.
Broader Context: DOJ’s Crackdown on Crypto-Related Crimes
This forfeiture action is part of a broader Trump administration push to recover stolen digital assets through civil proceedings, bypassing the need for criminal convictions to seize property. Recent similar efforts include:
- A June 2025 seizure of $225.3 million in cryptocurrency linked to “pig butchering” investment scams originating in Asia.
- A $7.7 million forfeiture in June 2025 from North Korean IT workers involved in illicit schemes.
- A July 2025 complaint for $2.4 million in Bitcoin tied to the Chaos ransomware group.
SIM-swapping has become a preferred method for cybercriminals targeting high-value crypto accounts, with past cases resulting in losses from thousands to over $20 million per victim. The DOJ recommends preventive measures such as using authenticator apps instead of SMS for MFA, monitoring accounts for unusual activity, and contacting carriers to add fraud alerts. For more tips, visit the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov/PSA/2024/PSA240411.
The case is being prosecuted by Trial Attorneys Jessica Peck and Gaelin Bernstein of CCIPS, along with Assistant U.S. Attorneys for the District of Columbia. If successful, the forfeited funds could be used to compensate victims or support law enforcement initiatives. This development underscores the DOJ’s increasing sophistication in tracing and seizing crypto assets, serving as a deterrent to would-be thieves in the evolving landscape of digital finance.