Who Actually Authorised Bitcoin ETF: SEC or Somebody Else? Case Uncovered
Eric Council Jr., 25, of Alabama, was arrested in January 2024 for hacking the SEC’s X (previously Twitter) account. The hack led to a false announcement about Bitcoin ETF approval, inflicting a brief surge in Bitcoin’s worth by $1,000.
What’s The Case
Eric Council Jr., a 25-year-old from Athens, Alabama, has been arrested for his involvement within the unauthorized takeover of the U.S. Securities and Change Fee’s (SEC) X account in January 2024.
The account was hacked, and a fraudulent put up falsely claimed that the SEC had authorised the itemizing of Bitcoin exchange-traded funds (ETFs).
Penalties of False Bitcoin ETF Approval
False Bitcoin ETF Approval prompted the worth of Bitcoin to spike by $1,000, solely to drop by $2,000 when the SEC regained management and confirmed the message as pretend.
The indictment alleges that Council and his co-conspirators used a SIM swap assault to entry the SEC X account. SIM swapping includes fraudulently transferring a telephone quantity to a brand new system managed by the attacker, enabling entry to delicate accounts.
Council allegedly created a pretend ID to execute the SIM swap at a retailer in Alabama. This allowed him to entry the SEC’s account and share the entry codes together with his accomplices. They then posted the fraudulent tweet, which manipulated the market.
Council faces costs of aggravated identification theft and entry system fraud, amongst others. Legislation enforcement, together with the FBI’s Cyber Division and the SEC’s Workplace of Inspector Normal, carried out the investigation, which revealed Council obtained Bitcoin as cost for his function within the crime.
He additionally tried to cowl his tracks by returning the telephone used for the assault and looking out on-line for indicators of being investigated by the FBI.
Conclusion
Council’s arrest highlights the rising risk of SIM swap assaults in monetary markets, the place cybercriminals exploit vulnerabilities to control markets. The FBI and SEC stay dedicated to holding cybercriminals accountable for undermining market integrity.
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