Two Indicted in Latest Federal Prosecution of SIM-Swapping Crypto Theft
One alleged conspirator tried to SWAT the other after he "failed to share" the pair's stolen crypto.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/RIFDAJQWABEKXIILSPHPOKMKN4.jpg)
SIM card
Federal prosecutors on Wednesday said two men have been indicted for stealing cryptocurrency from victims through a SIM-swapping and phishing fraud scheme.
- Twenty-one-year old Jordan K. Milleson of Maryland and 19-year-old Kyell A. Bryan of Pennsylvania allegedly collaborated in the theft of $16,847 in cryptocurrency from one victim (the owner of a "digital currency investment" company, says one filing) during the summer of 2019.
- Milleson allegedly staged bogus websites and emails through which he "phished" login credentials from victims. He, Bryan and others then compromised the victim's mobile phone through SIM swapping, the Department of Justice alleged in a press statement.
- Prosecutors additionally claim Bryan tried to "SWAT" Milleson's residence in "retaliation for Milleson failing to share the proceeds of the digital currency theft."
- The pair face allegations of wire fraud, unauthorized access to protected computers in furtherance of fraud, intentional damage to protected computers, aggravated identity theft and wire fraud conspiracy in Maryland's federal district court.
The case should remind members of the cryptocurrency community of the dangers of storing crypto on hot wallets, especially those secured via two-factor authentication methods such as text confirmation. Weakly secured cellular accounts are often an inadequate defense against hackers bent on compromising known crypto holders' wallets.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.