Arrest Made in SEC Hack Resulting in Bitcoin Price Spike

Thursday, 17 October 2024, 17:06

Arrest made in SEC hack linked to bitcoin price spike. An Alabama man used a SIM swap attack to compromise the SEC's account, causing a temporary surge in bitcoin prices. Following the arrest, the FBI underlines the dangers of such fraud schemes.
Thehill
Arrest Made in SEC Hack Resulting in Bitcoin Price Spike

SEC Account Compromised

The FBI arrested an Alabama man Thursday in connection with the January hack of the Securities and Exchange Commission's (SEC) account on social platform X that briefly caused the price of bitcoin to spike. Eric Council Jr. allegedly used a SIM swap attack to take control of the SEC's account, which was then used by others to falsely claim that the agency had approved several exchange-traded funds (ETFs) holding bitcoin.

Impact on Bitcoin Prices

The price of bitcoin jumped by more than $1,000 following the fraudulent post. After the SEC regained control of the account and clarified that it had not approved the funds, the price of bitcoin dropped by more than $2,000.

Conspiracy and Charges

The fake post came at a moment when the cryptocurrency industry eagerly awaited the SEC's decision on bitcoin ETFs. The agency ultimately approved the funds just 24 hours later. “These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses...,


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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