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- Alabama hacker pleads guilty to SEC X account breach, fueling Bitcoin ETF misinformation.
- The case exposes social media’s vulnerability to market manipulation, urging stricter cybersecurity measures.
At the beginning of 2024, a high-profile SEC account hack led to speculation about an insider job, as reported by Crypto News Flash, particularly regarding Bitcoin ETF approval rumors. Now, another incident has surfaced—25-year-old Alabama resident Eric Council Jr. has pleaded guilty to federal charges related to the hacking of the U.S. Securities and Exchange Commission’s (SEC) official X account.
The Cyberattack and Market Reaction
The cyberattack falsely announced the approval of spot Bitcoin exchange-traded funds (ETFs), triggering a brief but notable spike in Bitcoin’s price. The fraudulent post, published on January 9, 2024, caused widespread confusion before the SEC quickly clarified that the information was false.
Ironically, the agency officially approved spot Bitcoin ETFs just a day later, adding to the market turbulence caused by the hack.
According to The Wall Street Journal, the fake message, impersonating former SEC Chair Gary Gensler, falsely stated that the agency had approved Bitcoin ETFs. For months, investors had been anticipating the SEC’s decision, which had the potential to affect Bitcoin’s price.
Prosecutors stated that the fake post caused Bitcoin’s price to surge by $1,000, followed by a $2,000 drop after the SEC quickly denied the post’s authenticity.
How the Hack Was Carried Out
According to federal prosecutors, Council and his co-conspirators executed the hack using a SIM swap attack—a technique where fraudsters manipulate mobile service providers into transferring a victim’s phone number to a new device under their control.
Council pleaded guilty in a Washington, D.C., federal court to charges of conspiracy to commit aggravated identity theft and access device fraud. His sentencing is scheduled for May 16, and he faces a mandatory minimum prison term of two years. The final sentencing decision will be made by Judge Amy Berman Jackson.
As part of his plea deal, Council agreed to forfeit $50,000 in illegal gains allegedly obtained through the scheme. Federal authorities filed a proposed forfeiture order on February 9, though court approval is still pending.
Implications and Market Impact
This case highlights the growing risks of cybercrime in financial markets, particularly the vulnerability of high-profile accounts to security breaches. It also raises concerns about the potential for social media to be exploited for financial manipulation, reinforcing the need for stronger security measures and regulatory oversight.
As of the time of writing, Bitcoin (BTC) is trading at $98,237, reflecting a 1.23% increase in the past day but a 0.57% decline in the past week.
