A trio has been indicted in a whopping $400 million heist from FTX, the crypto exchange that imploded spectacularly last year, court documents reveal. The accused, Illinois resident Robert Powell, 26, is believed to have masterminded the sophisticated SIM-swap scheme, which milks victims' online, financial, and social media accounts by hijacking their cell phone identities.
Reportedly living a life of luxury with no legitimate income sources, Powell was busted at a Highland Park home last month, under the glare of flashbangs and law enforcement at 4:30 a.m., a dramatic arrest that left neighbors scratching their heads as per the Chicago Tribune. Despite his $10,000 bond, Powell now faces serious charges alongside co-conspirators Carter Rohn, 24, and Emily Hernandez, 23, court records disclosed by CNBC show.
The unraveling of the FTX scandalous affair that saw founder Sam Bankman-Fried convicted of fraud now includes the arrests of Powell, Rohn from Indianapolis, and Hernandez from Fountain, Colorado, who allegedly traversed more than 15 states to abet in the elaborate identity theft conspiracy. While the U.S. Attorney’s Office in Washington declined to comment, sources identified FTX as the "Victim Company-1," a revelation that has tacked on just another layer to the already intricate web of deceit linked to FTX's collapse.
Hernandez, already on pretrial release after posting a bond, and Powell, who is on house arrest after a Chicago judge's orders, are accused of concocting fake IDs and hoodwinking mobile service providers in multiple states, paving the way for the FTX mega heist on the day it filed for bankruptcy protection; the hefty amount was drained from FTX's virtual wallets into those controlled by the conspirators, resulting in not just crypto but also data plunder, as per the indictment. Powell's attorney, Gal Pissetzky, has chosen to remain mum on the details of the investigation, echoing the silence noted on Powell’s once-active social media accounts which harbored cryptic posts and has the promise of never stopping, despite whatever results would come from the risky ventures he indulged in.
As the case unfolds, pieces of the puzzle from Powell's past, including alleged affiliations with the notorious "ChoppaBoyz" gang and a history of PayPal hackings dating back to 2018 leading to $1.3 million in stolen funds come to light, further illustrating the depth of the cyber crimes orchestrated by Powell and his affiliates, according to the Chicago Tribune. "Never count my money before my blessings, because there’s no telling what’s going to happen," Powell had previously posted, an eerie prelude to his current predicament as he awaits trial, where if convicted, faces life imprisonment.
