A 25-year-old Alabama man was arrested Thursday for hacking the Securities and Exchange Commission’s X account as part of a conspiracy to manipulate Bitcoin prices earlier this year, prosecutors said.
In January, hackers posted false news to the SEC’s @SECGov X account announcing that the SEC had approved a Bitcoin exchange-traded fund, causing the cryptocurrency’s price to soar. The agency quickly disavowed and deleted the post.
The incident sparked criticism of the SEC, the top U.S. market regulator, and renewed concerns about the security of social media platform X since it was acquired by billionaire Elon Musk in October 2022.
In January, hackers posted false news about a widely expected SEC announcement regarding Bitcoin, shocking the market and sending the cryptocurrency’s price soaring. Reuters
The U.S. Attorney’s Office for the District of Columbia announced in a statement Thursday that Eric Council Jr. of Athens, Alabama, was arrested Thursday morning in connection with the hack. Counsel for the council did not respond to requests for comment.
Federal prosecutors allege that the council helped anonymous co-conspirators who identified the victims access the SEC’s X account, known as “CL.” They allege they instructed the council on how to switch the victim’s phone to a new device and used that access to post fake posts. SEC’s X account message.
The post on X caused the price of Bitcoin to jump by $1,000. According to the Justice Department, Council then received a Bitcoin payment for the SIM replacement shortly after driving to Birmingham, Alabama, to return the iPhone.
A post on @SECGov said securities regulators have approved holding Bitcoin in exchange-traded funds (ETFs). Reuters
The council then conducted Internet searches with phrases such as “What are the signs that the FBI is targeting you” and looked for information about deleting accounts maintained on the encrypted messaging app Telegram. The prosecution claims.
The SEC did not immediately respond to a request for comment on Thursday’s arrest.
According to the indictment, Council is charged with conspiracy to commit aggravated identity theft and access device fraud.
The day after the hack, the SEC officially approved Bitcoin ETFs, further pushing the cryptocurrency into the mainstream.
