An Alabama man, aged 25, was arrested for his alleged involvement in the January hack of a U.S. Securities and Exchange Commission (SEC) social media account, as reported by the Justice Department. The accused, Eric Council Jr. from Athens, is said to have played a part in breaking into the SEC's account on X (formerly Twitter), which led to a significant spike in the price of bitcoin.
The hack involved a false announcement regarding the approval of long-awaited bitcoin exchange-traded funds. Following the fraudulent post claiming SEC approval for Bitcoin ETFs, the price of bitcoin surged by over $1,000. However, SEC Chairman Gary Gensler quickly clarified on his personal account that the SEC's account had been compromised and that no such approval had been granted.
Authorities revealed that Council executed a 'SIM swap' technique, using a fake ID to impersonate an individual with access to the SEC's X account. By convincing a cellphone store to provide him with a SIM card linked to the targeted person's phone, Council gained control of the cellphone number and access codes to the SEC's X account. These details were then shared with others who ultimately breached the account and made the unauthorized post.
Prosecutors disclosed that Council's online activities following the incident included searches related to signs of being under investigation by law enforcement or the FBI, even without direct contact from them. Council now faces charges in Washington's federal court, including conspiracy to commit aggravated identity theft and access device fraud.
The price of bitcoin experienced significant fluctuations, initially rising from around $46,730 to nearly $48,000 after the false post on January 9. However, it dropped back to approximately $45,200 after the SEC's denial. The SEC officially approved the first exchange-traded funds holding bitcoin the next day.
