Ammar Raza

FBI Arrests Alabama Man for SEC X Account Hack That Manipulated Bitcoin Price

Bitcoin (BTC), Bitcoin ETFs, Cryptocurrency, FBI, SEC

FBI
  • The FBI arrested Eric Council Jr. for hacking the SEC’s X account.
  • He posted fake news about a Bitcoin ETF approval, causing a price surge.
  • Council faces charges for identity theft and access device fraud.

Eric Council Jr., a 25-year-old from Athens, Alabama, was arrested by the FBI in connection with an unauthorized hack of the U.S. Securities and Exchange Commission’s (SEC) X account, formerly known as Twitter.

According to the press release, the incident occurred in January 2024 when Council and his co-conspirators posted a fake announcement stating that the SEC had approved the listing of Bitcoin ETFs, causing a sudden surge in Bitcoin’s price by over $1,000.

The U.S. Department of Justice announced that the Council is charged with conspiracy to commit aggravated identity theft and access device fraud. The hackers gained control of the SEC’s X account through a SIM swap attack, a method where fraudsters trick telecom providers into transferring phone numbers, allowing them to bypass security measures like two-factor authentication.

SEC Fake Announcement Impact on Bitcoin Price

The false news of the Bitcoin ETF approval led to immediate reactions in the market. Bitcoin saw a sudden price increase, climbing by $1,000 per coin. However, once the SEC regained control of its X account and issued a statement clarifying the situation, the price dropped by $2,000.

The SEC was deliberating on Bitcoin ETFs at the time, adding to the market’s confusion. SIM swapping, as described in the indictment, allowed the Council to bypass security measures and access the SEC’s X account. He used fake IDs and personal data stolen from a co-conspirator to execute the hack. Council was paid in Bitcoin for his role in the scheme.

FBI Cracking Down on Cybercrime

The FBI, along with other law enforcement agencies, continues to crack down on cybercriminals involved in financial fraud. According to U.S. Attorney Matthew M. Graves, SIM-swapping scams pose a serious risk to individuals and companies.

“These schemes result in financial losses and manipulation of markets,” Graves said, emphasizing the severity of the crime. Council faces several years in prison if convicted of the charges, with the case highlighting the growing problem of cyber-enabled fraud in the digital age.

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Ammar Raza

Ammar Raza