Alabama Man Charged Over Alleged SEC Social Media Hack

Alabama Man Charged Over Alleged SEC Social Media Hack

An Alabama man has been arrested in connection with a social media hack that made bitcoin prices increase, raising questions about the security of government communications.

At a Glance

  • Eric Council Jr. was arrested for hacking the SEC’s X account, posting false bitcoin ETF approval.
  • The false announcement caused bitcoin prices to temporarily spike before crashing back down.
  • Council faces charges of aggravated identity theft and access device fraud.
  • The SEC clarified the legitimacy of ETF approvals shortly after the incident.

Alabama Hacker’s Arrest and Intentions

Eric Council Jr., a 25-year-old from Alabama, was arrested following an alleged hack into the U.S. Securities and Exchange Commission’s (SEC) social media account. FBI agents apprehended Council, believing he was behind a false post that claimed the SEC had approved bitcoin exchange-traded funds (ETFs) for all major U.S. exchanges. This incorrect information triggered a temporary surge in bitcoin’s value.

The Department of Justice has charged Council with conspiracy to commit aggravated identity theft and access device fraud. According to the charges, he employed a “SIM swap” tactic using fake identification to gain access to a phone number linked to the SEC’s account. This allowed him to share access codes necessary to make the fraudulent post.

Bitcoin Market Fluctuation and SEC Response

The fake announcement led to a sharp but brief rise in bitcoin’s price, increasing from about $46,730 to close to $48,000. As soon as Gary Gensler, SEC Chairman, announced that the account was compromised and no such approval had been granted, the cryptocurrency’s value dipped back to approximately $45,200. This fluctuation highlighted the crypto market’s sensitivity to regulatory news.

The SEC moved swiftly to regain control of the account, ensuring the public understood the misinformation and restoring trust. The agency officially approved the genuine bitcoin ETFs the day after, reaffirming the SEC’s dedication to transparency and market integrity.

Legal Proceedings

Eric Council Jr. remains held without bail, with proceedings moved to Washington, D.C. His attorney claims Council is being unfairly targeted, given his lack of prior criminal activity. His mother expressed disbelief at the allegations, noting that he is currently unemployed and has never been in trouble before.

Sources

  1. Alabama man arrested in SEC social media account hack that led the price of bitcoin to spike
  2. FBI arrests man over SEC hack, alleging bitcoin manipulation
  3. FBI arrests Alabama man for SEC X hack that spiked price of bitcoin