An Alabama man, Eric Council Jr., was arrested on Thursday for allegedly hacking the U.S. Securities and Exchange Commission’s (SEC) social media account, causing a brief spike in Bitcoin prices earlier this year.
The Hack that Shook the Market
In January, the SEC’s account on X (formerly Twitter) was compromised, leading to a false announcement that the SEC had approved Bitcoin exchange-traded funds (ETFs). This misleading post sent Bitcoin’s price soaring by over $1,000, pushing it from about $46,730 to nearly $48,000. However, the excitement was short-lived. SEC Chairman Gary Gensler quickly clarified that the post was unauthorized, stating, “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”
How It Happened
Authorities claim Council orchestrated a “SIM swap,” using a fake ID to impersonate an individual with access to the SEC’s X account. He convinced a cellphone store to issue a SIM card linked to that person’s phone number. This granted him access codes to the SEC’s account, which he then shared with accomplices who published the misleading post.
After the hack, Council reportedly searched online for signs of being under investigation, raising suspicions about his actions.
Facing Serious Charges
Council has been charged in federal court in Washington with conspiracy to commit aggravated identity theft and access device fraud. An attorney for Council has been contacted for comment, but no response has been provided yet.
The incident underscores the significant impact social media hacks can have on financial markets, as evidenced by Bitcoin’s volatile swing back down to around $45,200 following the SEC’s denial.
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