Eric Council Jr. pleaded responsible to hacking the SEC’s X account to submit a faux Bitcoin ETF approval, briefly spiking Bitcoin costs. He faces as much as 5 years in jail.
Eric Council Jr., a 25-year-old from Athens, Alabama, pleaded responsible to aggravated id theft and entry system fraud in reference to the January 2024 hacking of the U.S. Securities and Change Fee’s (SEC) social media account. The breach resulted in a false announcement of Bitcoin exchange-traded fund (ETF) approvals, inflicting Bitcoin costs to surge earlier than the misinformation was corrected.
Pretend SEC Bitcoin ETF Announcement Triggered Market Surge
Based on courtroom paperwork, Council and his co-conspirators executed a SIM swap assault, a way that allowed them to achieve management of the SEC’s X (previously Twitter) account. Through the use of a faux ID, Council tricked a cellphone retailer worker into offering a SIM card linked to an SEC-affiliated telephone quantity. As soon as they gained entry, the hackers posted a fraudulent message claiming the SEC had authorized a number of Bitcoin ETFs.
The unauthorized submit, printed underneath then-SEC Chair Gary Gensler’s identify, said:
Right now the SEC grants approval for #Bitcoin ETFs for itemizing on all registered nationwide securities exchanges.
The false announcement led to a speedy $1,000 spike in Bitcoin costs, as merchants reacted to the deceptive data. Nonetheless, the SEC shortly regained management of its account and issued a correction, prompting a $2,000 drop in Bitcoin’s worth.
Alabama Man Faces As much as 5 Years in Jail
Council was arrested in October 2024 and admitted to his position within the scheme. Prosecutors revealed that he acquired at the least $50,000 from the fraudulent operation. His responsible plea means he faces as much as 5 years in federal jail, a $250,000 tremendous, and three years of supervised launch.
He’s scheduled for sentencing on Could 16, 2025.
SEC Strengthens Cybersecurity After Breach
Following the hack, the SEC acknowledged that multi-factor authentication (MFA) had been disabled on its social media accounts on account of entry points. The company has since applied enhanced safety measures, together with MFA on all accounts, to forestall future unauthorized entry.
Cybersecurity Specialists Warn of Rising SIM Swap Threats
The case highlights the rising threat of SIM swap assaults, which have been utilized in a number of high-profile hacks. Authorities proceed to research cybercrimes that manipulate monetary markets, emphasizing the significance of digital safety measures for presidency businesses, companies, and people.
Keep Knowledgeable on Cybersecurity Finest Practices
For tips about defending towards SIM swap fraud and on-line account takeovers, go to the Federal Commerce Fee’s information.
