A misleading announcement caused bitcoin's price to surge by over $1,000, but the SEC quickly regained control of its account and confirmed that the post was unauthorized due to a security breach. Following this clarification, bitcoin’s value plummeted by more than $2,000.
An Alabama man was taken into custody by the FBI this morning in Athens, Alabama, facing serious charges related to a January hacking incident involving the Securities and Exchange Commission (SEC)'s social media account on X, previously known as Twitter.
Court documents reveal that Eric Council Jr., 25, allegedly collaborated with others to gain unauthorized access to the SEC’s X account around January 9. Posing as SEC Chair Gary Gensler, they falsely announced the approval of bitcoin Exchange Traded Funds. This misleading announcement caused bitcoin's price to surge by over $1,000, but the SEC quickly regained control of its account and confirmed that the post was unauthorized due to a security breach. Following this clarification, bitcoin’s value plummeted by more than $2,000.
“The indictment alleges that Eric Council Jr. unlawfully accessed the SEC’s account on X by using the stolen identity of a person who had access to the account to take over their cellphone number,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Council’s co-conspirators then allegedly used this unauthorized access to the X account to falsely announce that the SEC had approved listing bitcoin ETFs, which caused the price of bitcoin to rise by $1,000 and then fall by $2,000. Council’s indictment underscores the Criminal Division’s commitment to countering cybercrime, especially when it threatens the integrity of financial markets.”
“These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses to victims and leaks of sensitive personal and private information,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets. Through indictments like this, we will hold accountable those who commit these serious crimes.”
The conspirators executed the hack through a fraudulent Subscriber Identity Module (SIM) swap, which Council allegedly orchestrated. This process involves tricking a cell phone provider into transferring a victim's number to a SIM card controlled by the hacker.
According to investigators, Council and his accomplices created a fake ID in the victim’s name, allowing Council to impersonate the victim, seize control of their phone account, and access the social media account tied to that number to post the fraudulent message.
On October 10, a federal grand jury in the District of Columbia indicted Council on charges of conspiracy to commit aggravated identity theft and access device fraud. If found guilty, he could face up to five years in prison. A federal district court judge will ultimately decide his sentence, taking into account U.S. Sentencing Guidelines and other relevant factors.
“The defendant allegedly deceived the public by impersonating the victim and making fraudulent statements on behalf of the SEC,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “The FBI and our partners will continue to investigate and hold accountable those who attempt to manipulate financial markets for their own gain.”
THANK YOU FOR YOUR TIME
DISCLAIMER
The views and opinions expressed in this article are those of the authors and do not
necessarily reflect the official policy or position of The Steven Wick Blog. Any content provided by our bloggers or authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.
If you decide to purchase any item using our authorized referral/affiliate links, be aware, we may receive a portion of the sales as commission, i.e. if you purchase a product/service.
To shop, select or click buttons, links or images, you will be redirected to product pages. Please, carefully research before you purchase. Feel free to share and leave a comment, we would love to hear from you. Your feedback is very important to us.
For more like this, music, literature, news, fashion, savvy political commentary, and fascinating features, sign up for the Steven Wick News Letter.
We here at the Steven Wick Blog are so proud of our work, we’d like to thank you for being a part of our community. However, our mission to share so much from music, literature, lifestyle to fashion is a 24/7 undertaking! We need your help to continue our work. Your financial donation will help us not only keep the lights on, but enable us run many more stories in the future to come. DONATE HERE
Message Of Gratitude
We deeply appreciate your contribution in making our blog the top brand among customers.
Without you as our readers, we wouldn't have achieved this level of success. Your satisfaction is our utmost priority, and we assure you that we will always be a reliable source for your entertainment needs.
Your trust in us is invaluable, and we are grateful for your generous donations as our readers.
A number of you took an extra effort and opted to contribute as monthly donors. By doing so, your generous contribution is multiplied by twelve throughout the year, thereby amplifying the impact you have on our work. Your dedication truly makes a significant change, and we sincerely appreciate your valuable support.
Your support has been instrumental in our brand's success.
Thank you for being with us throughout the past year.
As we continue to grow and enhance our business, we pledge to prioritize your needs and interests.
Best Regards
The Steven Wick Team
Comments