Alabama Man Arrested in SEC Social Media Hack, Causing Bitcoin Price Volatility
An Alabama resident, Eric Council Jr., has been arrested for his alleged involvement in hacking the U.S. Securities and Exchange Commission’s (SEC) social media account. The breach led to a false announcement about bitcoin exchange-traded funds (ETFs), causing a temporary spike in bitcoin prices.
The SEC’s account on X, formerly known as Twitter, was compromised, resulting in the spread of misinformation regarding Bitcoin ETF approval. SEC Chairman Gary Gensler swiftly addressed the situation, clarifying that the account had been hacked and denying any approval of bitcoin ETFs at that time.
According to investigators, Council allegedly executed a “SIM swap” to gain unauthorized access to the SEC’s social media account. He reportedly used a fake ID to impersonate an individual with access, convincing a cellphone store to issue a new SIM card. This maneuver allowed Council to take control of the person’s phone number and subsequently access the SEC’s account. Council then allegedly shared the access codes with others, leading to the unauthorized post.
Legal proceedings are underway, with Council facing charges of conspiracy to commit aggravated identity theft and access device fraud. The case is currently being handled in Washington’s federal court. An attorney for Council has been contacted for comments on the matter.
The incident had a significant impact on Bitcoin prices, causing them to surge from approximately $46,730 to just below $48,000 following the false announcement. However, prices quickly dropped to around $45,200 after the SEC’s denial of the announcement. Notably, the SEC officially approved bitcoin ETFs the day after the hack incident.
This event highlights the potential vulnerabilities in social media accounts of high-profile organizations and the immediate effects such breaches can have on financial markets.
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