FBI arrested Alabama man for allegedly manipulating bitcoin prices by hacking the Securities and Exchange Commission’s official X account
Key Takeaways
- A hack that occurred in January raised bitcoin prices up to $1000.
- The hacker used a “Sim Swapping” hack to gain control over the SEC X account.
- The FBI arrested an Alabama man on Thursday over a January hack.
- Eric is charged with conspiracy to commit aggravated identity theft and access device fraud.
The Federal Bureau of Investigation (FBI) imprisoned a 25-year-old in Alabama on Thursday for allegedly manipulating bitcoin prices by hacking the Securities and Exchange Commission’s official X account on January 9.
The price of bitcoin skyrocketed in January when a hacker uploaded fake information on the SEC’s @SECGov X social media account claiming the agency had authorized bitcoin exchange-traded funds using a “Sim Swapping” hack. The post was promptly removed, and the agency soon apologized.
“These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses to victims and leaks of sensitive personal and private information. Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets. Through indictments like this, we will hold accountable those who commit these serious crimes.” – said U.S. Attorney Graves.
According to a Justice Department press statement, Eric Council Jr. was detained in Athens, Alabama, and charged with conspiracy to commit aggravated identity theft and access device fraud.
Since billionaire Elon Musk purchased X in October 2022, security issues have been highlighted, prompting criticism from the SEC, the major US market regulator.
A comment from the lawyer of the council is still pending as he didn’t respond to the request immediately.
Bitcoin prices increased by $1,000 as a result of the post on X and then decreased by $2000 after announcing the correction. According to the Justice Department, the Council went to Birmingham, Alabama, to return the iPhone shortly after receiving bitcoin payment for the SIM swap.
Prosecutors claim that Council then searched the internet for terms like “what are some signs that the FBI is after you” and sought information about erasing accounts on the encrypted messaging app Telegram.
The spokesperson said the SEC appreciated the FBI for their work with these words,
“The SEC thanks law enforcement for their vigilance in seeking accountability for the breach of the SEC’s X account.”
Ongoing cyber activities not only affect individuals but also have a serious impact on nations. Considering this a serious concern, Ukraine’s minister called out Russia for ramping up disinformation using Gen AI.
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