2 men arrested in Oklahoma, suspected in $14 million cryptocurrency theft, hacking of California company (Crowd Machine)
According to a search warrant filed in Oklahoma County, Crowd Machine reported the hack and theft to a California computer crimes task force on September 22. Its believed, according to court documents, that the hack was accomplished through a SIM swap, which allows hackers to steal a persons mobile phone number and identity.
In a post on its website earlier this week, Crowd Machine said access to its cryptowallet was compromised and Crowd Machine Compute Tokens (CMCTs) were stolen. Crowd Machine said most exchanges had suspended trading in the currency and recommended no one purchase the tokens until the investigation was closed, and that exchanges would eventually re-open.
The CEO (Sproule) wrote on his companys website earlier this week that purchases of stolen tokens by those not involved with the theft will be honored.