Eric Council Jr.'s hacking of the SEC's X account caused Bitcoin to spike by $1,000 before dropping $2,000 as the post was debunked.
A SIM swap attack gave Council access to the SEC’s X account, where he posted false Bitcoin ETF approval, shaking the market.
The FBI's arrest of Council underscores the need for stronger security after cyberattacks led to a $3,000 swing in Bitcoin’s price.
The FBI has arrested Eric Council Jr., 25, for hacking the SEC’s X account, formerly Twitter, and posting a false Bitcoin ETF approval. After the SEC refuted the letter, Bitcoin dropped by $2,000 from its over $1,000 increase in January 2024 as a result of this attack. Council faces charges of planning to steal identity theft and access device fraud.
https://twitter.com/BitcoinMagazine/status/1846940545081373182 Hacking and Market Manipulation
Council gained control of the SEC's X account via a SIM swap attack. Con artists trick service providers by giving them control over a victim's phone number through a method known as "SIM swapping." They can access critical accounts and go beyond two-factor authentication as a result.
In this case, the Council used a fake ID to acquire the SIM card of an authorized individual. After obtaining access, he passed the login details to his co-conspirators, who posted a fake ETF approval.
The fraudulent message led to Bitcoin’s price spike, shaking financial markets. However, the price quickly corrected when the SEC announced the hack, causing Bitcoin's value to drop by $2,000 due to the market's response.
The FBI’s Investigation
Following the incident, the FBI launched an investigation that revealed Council's involvement. He conducted internet searches about SEC hacking and signs of an FBI investigation. The authorities arrested him, and he is set to make his first court appearance soon.
His actions are now part of a larger crackdown on cybercrime that threatens financial markets. Moreover, U.S. Attorney Matthew Graves emphasized the seriousness of such cyberattacks, noting how they disrupt markets and harm investors.
SEC’s Response and Future Impact
Despite the fake post, the SEC approved 11 Bitcoin ETFs the following day, which now hold over $63.5 billion in assets. The rapid action taken by authorities reinforces the need for heightened security across financial platforms, especially as cybercriminals exploit vulnerabilities.
The arrest of the council shows the ongoing battle between regulators and hackers who are attempting to manipulate markets. The SEC and law enforcement remain vigilant, ensuring such breaches don’t destabilize financial markets further.
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