ZachXBT Uncovers Massive SIM Swap Crypto Theft
Blockchain investigator ZachXBT has revealed new details in a major SIM swap attack carried out by Canadian teenager Cameron Redman. The incident occurred in 2020, when Redman was just 17 years old. He allegedly hijacked the phone number of crypto investor Josh Jones, gaining access to two-factor authentication codes and seizing over 1,547 Bitcoin and 60,000 Bitcoin Cash. At the time, the stolen funds were worth an estimated $37 million.
Following the attack, Redman attempted to launder the assets using hundreds of microtransactions routed through centralized crypto exchanges. Despite this, law enforcement recovered only $5.4 million, leaving over $31 million unaccounted for. Redman was eventually charged in November 2021 in Canada, with investigative support from U.S. federal agencies. However, due to his minor status at the time, legal protections shielded his identity during early proceedings.
ZachXBT now argues that such protections are inadequate in high-value cybercrime cases. He suggests that juvenile laws should not apply to offenders involved in multimillion-dollar thefts. According to his findings, Redman continued to engage in social engineering and online fraud schemes even after being charged. This pattern, ZachXBT claims, shows a failure of the justice system to deter repeat offenders and highlights the urgent need for more specific legislation.
The Growing Threat of SIM Swap Attacks
SIM swapping is a form of identity theft where an attacker convinces a mobile provider to transfer a victim’s phone number to a SIM card they control. This allows the attacker to intercept SMS verification codes and access secure accounts, including cryptocurrency wallets. In recent years, this tactic has become one of the most effective forms of crypto-related cybercrime.
Reported cases of SIM swapping have surged globally. In the United Kingdom, incidents rose by over 1,000% in one year—from 289 to nearly 3,000 cases. In the United States, the FBI tracked over $68 million in SIM swap-related losses in 2021, followed by $48.8 million in 2023, and $82 million in 2024. These numbers show a growing and well-organized threat targeting both retail investors and public figures.
Security experts recommend several countermeasures to defend against these attacks. Key suggestions include replacing SMS-based two-factor authentication with dedicated authenticator apps, setting PINs with mobile carriers, reducing personal data exposure online, and swiftly responding to account changes. But experts also agree that technology alone cannot solve the problem. Without updated laws and stricter punishments, SIM swappers—especially younger ones—will continue exploiting regulatory loopholes.
The post ZachXBT Exposes $37M SIM Swap Heist, Urges Legal Reform in Crypto Crime Cases appeared first on Coinfomania.
