Federal Court Orders Forfeiture of Millions in Crypto Stolen via SIM Swapping Scheme

On Wednesday, July 3, 2024, the US District Court for the Northern District of California issued a final order of forfeiture in an extensive cryptocurrency theft case.

Judge William H. Orrick approved the confiscation of over 119 Bitcoin and 93,000 Stellar coins connected to Matthew Gene Ditman. According to court documents, these digital assets were held in Ditman’s accounts on the cryptocurrency exchange Bittrex.

The order is the culmination of a case that began in 2019. Ditman and another individual, Ahmad Wagaafe Hared, were charged with conspiracy, computer fraud, identity theft, and other crimes related to a SIM swapping scheme. Prosecutors alleged the men deceived mobile phone providers into transferring victims’ phone numbers to steal cryptocurrency funds and passwords.

Through SIM swapping, the accused were able to bypass two-factor authentication protocols and access valuable accounts held by cryptocurrency company executives and investors. Records show Ditman and Hared utilized social engineering techniques to confuse representatives and redirect numbers without authorization.

Ditman was arrested in Las Vegas and appeared in the District of Nevada on January 31, 2019, but was also released on bond.

With no petitions contesting the order, Judge Orrick’s ruling approves the handover of 119.77 bitcoin and 93,420 Stellar coins to federal authorities. The bitcoin’s value is estimated at millions of dollars based on current exchange rates.

Please contact BlockTribune for access to a copy of this filing.