An individual from Alabama was taken into custody on Thursday for allegedly participating in the hacking of a U.S. Securities and Exchange Commission (SEC) social media account in January. This incident reportedly caused a significant increase in the price of bitcoin, according to the Justice Department.
Eric Council Jr., a 25-year-old resident of Athens, is said to have assisted in breaching the SEC’s account on X (previously known as Twitter). This breach enabled hackers to prematurely declare the approval of sought-after bitcoin exchange-traded funds (ETFs).
Following the unauthorized announcement, the price of bitcoin surged over $1,000 after the post stated, “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” However, the spike was short-lived. SEC Chairman Gary Gensler promptly indicated on his personal account that the SEC’s social media account had been compromised and emphasized that the SEC had not approved any such listings. He labeled the post as unauthorized but did not elaborate further.
According to officials, Council executed a method known as a “SIM swap.” He utilized a counterfeit identification document to impersonate a person with access to the SEC’s account and persuaded a cellphone retailer to issue him a SIM card tied to that individual’s phone. This maneuver allowed him to seize control of the victim’s phone number, granting him access codes to the SEC’s account, which he then shared with others who broke into the account to publish the misleading post.
Authorities disclosed that after he returned the iPhone used during the SIM swap, Council’s online queries included: “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them?”
A request for comments was sent to Council’s attorney on Thursday, who has been charged in federal court in Washington with conspiracy to commit aggravated identity theft, as well as access device fraud.
The bitcoin price fluctuated from approximately $46,730 to just under $48,000 following the unauthorized announcement on January 9, only to drop back to around $45,200 after the SEC’s rebuttal. The SEC subsequently, after the incident, officially authorized the first exchange-traded funds that are backed by bitcoin on the following day.
