Alabama man arrested for SEC account hack impacting bitcoin prices
- An Alabama man, Eric Council Jr., was arrested for allegedly hacking into a government social media account.
- The hack led to a false announcement that Bitcoin ETFs had been approved, causing the cryptocurrency's price to spike by over $1,000.
- Council faces severe charges including conspiracy to commit aggravated identity theft, indicating serious implications for cybercrime enforcement.
In early January 2023, federal authorities revealed that Eric Council Jr., a 25-year-old from Athens, Alabama, was implicated in a significant cybercrime involving the U.S. Securities and Exchange Commission's (SEC) social media account. On January 9, the SEC account was compromised, resulting in a misleading post falsely indicating that the SEC had approved Bitcoin exchange-traded funds (ETFs). This misinformation spurred a rapid increase in Bitcoin's price, which rose by over $1,000, causing market volatility as investors reacted to the news. The Justice Department's investigation disclosed that Council, alongside unnamed co-conspirators, executed a SIM swap attack to hijack the phone number of an individual with access to the SEC account, identified only as “C.L.” Council allegedly created a fake ID to impersonate C.L. while visiting an AT&T store to request a new SIM card. This manipulation allowed him to access secure information pertaining to the SEC's social media account. Following the unauthorized announcement, SEC Chairman Gary Gensler promptly clarified that the post was not sanctioned and the agency had not approved any Bitcoin ETFs. The resulting confusion and quick drop in Bitcoin's value after this clarification highlight the significant implications of misinformation in the cryptocurrency market. Currently, Council is facing charges of conspiracy to commit aggravated identity theft and access device fraud in Washington, marking a growing concern for digital security and enforcement in financial markets.