An Alabama man is facing serious charges after allegedly hacking the U.S. Securities and Exchange Commission’s (SEC) social media account, resulting in a temporary spike in Bitcoin prices. Eric Council Jr., 25, from Athens, was arrested Thursday, accused of playing a key role in the January breach that led to a misleading announcement about Bitcoin exchange-traded funds (ETFs).
The Hack That Moved Markets
On January 9, hackers took over the SEC’s X (formerly Twitter) account, prematurely claiming, “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” This unauthorized post sent Bitcoin soaring by over $1,000, pushing its price from around $46,730 to nearly $48,000 in a matter of minutes.
However, the excitement was short-lived. SEC Chairman Gary Gensler quickly stepped in, confirming that the post was fraudulent. “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products,” he tweeted, putting an end to the speculation and causing Bitcoin’s price to tumble back to approximately $45,200. Ironically, the SEC did grant approval for Bitcoin ETFs the very next day.
The SIM Swap Scheme
According to the Justice Department, Council employed a technique known as a “SIM swap.” He allegedly used a fake ID to impersonate an individual with access to the SEC’s account, persuading a cellphone store to issue him a new SIM card linked to the target’s phone number. With that access, he was able to retrieve codes needed to break into the SEC’s social media account.
Things took a turn for the worse for Council after he returned the iPhone used in the SIM swap. Investigators uncovered online searches from him such as, “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them?”—a clear indication of his growing anxiety over his actions.
Facing Serious Charges
Council has been charged in Washington, D.C., with conspiracy to commit aggravated identity theft and access device fraud. An email seeking comment from his attorney was sent but remains unanswered.
This incident highlights the potential vulnerabilities in our digital landscape, especially concerning important institutions like the SEC. While the price of Bitcoin may fluctuate based on rumors and unauthorized announcements, the consequences for those who exploit these vulnerabilities can be severe. As the crypto world continues to evolve, so too does the importance of security in safeguarding against such hacks.
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