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.