The arrest of an Alabama man by the FBI has shed light on a sophisticated hacking incident involving the U.S. Securities and Exchange Commission (SEC)’s social media account on platform X. Eric Council Jr. is accused of collaborating with others to gain unauthorized access to the SEC’s X account and falsely using SEC chair Gary Gensler’s name to announce the approval of a Bitcoin exchange-traded fund (ETF).
The Department of Justice revealed that Council allegedly orchestrated the hack by executing an unauthorized Subscriber Identity Module (SIM) swap. This deceptive tactic involved manipulating a cellphone carrier to transfer another individual’s contact number to a SIM card controlled by the perpetrator. By exploiting the stolen identity of a person with access to the SEC’s X account, Council was able to take over their cellphone number and hijack the associated social media accounts to post the misleading announcement about Bitcoin ETFs.
The fabricated statement led to a spike in Bitcoin’s price by over $1,000, followed by a sharp drop exceeding $2,000 once the SEC regained control of its X account and invalidated the announcement as unauthorized. The FBI’s Criminal Investigative Division Assistant Director, Chad Yarbrough, emphasized the severity of Council’s actions, stating that he deceived the public by impersonating a victim and disseminating fraudulent information on behalf of the SEC. Yarbrough affirmed the commitment of law enforcement agencies to investigate and prosecute individuals who seek to manipulate financial markets for personal gain.
Council is facing charges of conspiracy to commit aggravated identity theft and access device fraud, which could result in a maximum prison sentence of five years. The case underscores the critical need for robust cybersecurity measures, such as multi-factor authentication (MFA), to safeguard sensitive information and prevent unauthorized access to digital assets.
As the investigation unfolds, the implications of this hacking incident on market integrity and investor confidence continue to be scrutinized. The swift response of law enforcement agencies in apprehending Council serves as a reminder of the ongoing efforts to combat cybercrime and protect the integrity of financial markets. Stay informed about the latest developments in this case by subscribing to email alerts and following reputable sources for accurate information.