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- A hacker used a SIM swapping scheme to breach the SEC’s social media account, triggering a fake Bitcoin ETF post and a brief price surge.
- The FBI arrest signals a strong stance against financial market manipulation and cybersecurity breaches, emphasizing the severity of SIM swapping fraud.
Following recent crypto news, including the FBI’s warning about North Korean hackers targeting Bitcoin ETF issuers and crypto firms, as reported by CNF, Eric Council Jr., a 25-year-old from Athens, Alabama, was arrested for allegedly hacking the U.S. Securities and Exchange Commission’s (SEC) social media account.
Prosecutors claim Council used a “SIM swapping” technique in January to gain unauthorized access to the SEC’s X account. U.S. Attorney Matthew Graves said:
These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses and the leak of sensitive personal and private information. Here, the conspirators allegedly used their illegal access to manipulate financial markets. Through indictments like this, we aim to hold accountable those who commit these serious crimes.
He then transferred control to unnamed co-conspirators, who posted a fake announcement claiming the approval of spot Bitcoin exchange-traded funds (ETFs). This fraudulent post caused Bitcoin’s price to spike by over $1,000 before dropping by $2,000 once the hoax was revealed.
Details of the Scheme and Consequences
The FBI and U.S. Attorney Matthew Graves explained that Council obtained personal information about a victim to carry out the SIM swap. He reportedly used a fake ID at a cell phone store in Huntsville, Alabama, to obtain a SIM card linked to the victim’s phone number, which he then used to access the SEC’s social media account.
Council shared the access codes with his co-conspirators, who used the SEC account to falsely announce the approval of Bitcoin ETFs under the guise of the SEC Chairman. Following the scheme, Council was paid in Bitcoin and later returned the iPhone he used to execute the hack. Authorities discovered he conducted online searches about FBI investigations, indicating his awareness of the potential consequences of his actions.
U.S. Attorney Graves emphasized the severity of such SIM swapping schemes, stating that these fraudulent actions can result in financial manipulation and privacy breaches. The arrest signals that the government will pursue serious legal consequences for financial crimes involving market manipulation and cybersecurity breaches.
Amidst this development, Bitcoin (BTC) is currently trading at $67,807.04, with a surge of 0.85% in the past day and 11.21% in the past week.
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