Los Angeles, CA – Bart Stephens, co-founder and managing partner at Blockchain Capital, has recently filed a lawsuit against an unnamed hacker who he claims stole cryptocurrency from his digital wallets worth a stunning $6.3 million. Forbes reports that Stephens claims a person only known as “Jane Doe” exploited a SIM-swap vulnerability and violated security standards with a cellular network provider by using personal data obtained from the dark web.

Through this specific breach, the hacker was able to reset account passwords and seize control of Stephens’ digital assets. According to the lawsuit, which was submitted on August 16 in the United States District Court for the Northern District of California, the hacker planned the attack in May by seizing control of Stephens’ account on a cellular network and ultimately moving his personal phone number to a different device.

The fund’s Twitter account was also hijacked in an unrelated security breach earlier this month and used to advertise a cryptocurrency coin.

SIM-Swap Attacks are Increasing

SIM-swap assaults have becoming popular among hackers, as evidenced by a rising pattern that the FBI has identified. SIM-swap assaults caused an estimated $72 million in damages in 2022, up from $68 million in 2021, according to FBI data. These attacks largely rely on tricking cell phone network customer support agents into exposing delicate personal information.

With this information at hand, hackers can trick security processes to move a victim’s phone number to a new gadget they control.

Coinbase, Kraken, and Opensea have all benefited greatly from the support of Bart Stephens, a well-known player in the cryptocurrency world and co-founder of Blockchain Capital with his brother Brad in 2013.

A hacker took over several digital wallets

According to the lawsuit filed against the hacker, they used the stolen mobile phone number to get beyond password security and two-factor authentication on a number of secret digital wallets. The assailant then meticulously destroyed the plaintiff’s digital property.

The hacker allegedly spoke with Stephens a day before stealing the $6.3 million, bragging about their capacity to remotely change American phone numbers, according to Stephens.

The hacker also made an audacious attempt to take control of an extra $14 million in bitcoin and ethereum stored in Stephens’s custodial cold wallet. Thankfully, a watchful Blockchain Capital staffer noticed the shady conduct and stopped the illicit withdrawal. Stephens learned of the attack on his account for the first time during this incident.

The growing danger of SIM-swap assaults in the cryptocurrency realm is highlighted by Bart Stephens’ legal case, which also highlights the necessity of strong security measures to protect digital assets in an increasingly dangerous digital environment.

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