US authorities arrest suspected SIM exchangers after cryptocurrency thefts

The FBI arrested two Massachusetts residents on Thursday for attempting to steal cryptocurrency and hijack individuals' social media accounts by “SIM swapping” their phones.

According to a press release, the U.S. Department of Justice has charged Eric Meiggs, 21, and Declan Harrington, 20, with conspiracy, wire fraud, computer fraud, abuse and identity theft for allegedly allegedly targeted cryptocurrency company executives and other individuals “who likely owned significant amounts of cryptocurrency,” as well as those “who had high-value social media account names or “OG” (slang for “Original Gangster”).

The two men allegedly sought to steal more than $550,000 in cryptocurrency from 10 different people and apparently gained access to two social media accounts.

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The victims were not identified, although the indictment briefly described several of their ties to the crypto space. One victim owned a Bitcoin ATM, while another ran a “blockchain-based business.”

A number of individuals in the cryptocurrency space have been victims of SIM swapping, when attackers pose as the owners of a cell phone number, convincing cellular service providers to give them access to the victims' accounts. By taking control of a cell phone number, attackers can log into social media and sometimes cryptocurrency exchange accounts, giving them access to users' funds and digital presence.

Messari Ryan SelkisCoin Center Neeraj Agrawal and Seth Shapiro of VideoCoin have all reported experiencing such issues in recent weeks.

Michael Terpin, a prominent crypto investor, filed a lawsuit after swapping his SIM card, taking aim at both his mobile carrier AT&T and the alleged perpetrator. While his lawsuit against AT&T is ongoing, he won $75 million in a lawsuit against Manhattan resident Nicholas Truglia, 21.

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Similarly, Seattle-based Gregg Bennett is suing Bittrex, claiming the exchange failed to act in time to protect against a SIM swap targeting the angel investor.

The DOJ has already charged another individual, 20-year-old Ohio resident Dawson Bakies, alleging that he targeted more than 50 people to swap SIM cards.

According to Thursday's press release, the FBI and the Criminal Investigation Division of the Internal Revenue Service are investigating the case.

DOJ image via Paul Brady Photograph/Shutterstock

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