The FBI arrested a 25-year-old Alabama man on Thursday for his alleged role in a hack of the official Twitter account of the U.S. Securities and Exchange Commission (SEC) in January, which caused a brief surge in the price of Bitcoin. It rose more than $1,000 after the fake tweet was posted.
SEC Twitter hacker Eric Council Jr. arrested, more than one culprit
Eric Council Jr. faces charges of conspiracy to commit identity theft and device fraud and is expected to appear in court in the United States late Thursday, according to the U.S. Department of Justice (DOJ). The charges allege that the Council was part of a group that conspired to illegally hack into the SEC’s social media accounts and publish misleading information that could impact financial markets.
If convicted of conspiracy to commit identity theft and device fraud, the Council could face severe penalties. The aggravated identity theft charge, in particular, carries a minimum sentence of two years, while the other charges could have left him facing longer.
The impact of the January hack on Bitcoin
The incident occurred on January 9 when the SEC's Twitter account was compromised. The hackers posted a fake tweet from the account claiming that the SEC had approved a Bitcoin spot ETF. The specific content of the tweet is: "Today the SEC approved a Bitcoin ETF that will be listed on all registered national stock exchanges," suggesting that Bitcoin is about to gain wider legitimacy and adoption in the financial sector.
The misleading tweet immediately caused a surge in the price of Bitcoin, with the cryptocurrency's value soaring by more than $1,000 in a short period of time. At the time, the SEC was already considering whether to approve a Bitcoin ETF, making the fake tweet seem credible.
Shortly after the false tweet was posted, the SEC regained control of the account and moved quickly to rectify the situation. The agency released a statement confirming the tweet was a hack, noting that no Bitcoin ETF had been approved at the time.
“According to the Department of Justice, the price of Bitcoin fell by more than $2,000 following the release of the corrective statement.”
The SEC did approve rule changes for a Bitcoin ETF in the wake of the hack, a long-awaited milestone for the cryptocurrency industry. However, the approval had nothing to do with the misleading tweet, and the actual market effect was far less dramatic than the price manipulation caused by the hack.
With the rise of digital assets and the growing role of social media in financial markets, regulators and financial institutions are under pressure to strengthen cybersecurity measures.
This article The hacker who stole the SEC’s Twitter account to push up Bitcoin was arrested and threatened to be imprisoned for two years by falsely claiming that the ETF passed. First appeared on Chain News ABMedia.
