Following recent crypto news, including the FBI's warning about North Korean hackers targeting Bitcoin ETF issuers and crypto firms, as reported by CNF
A 25-year-old man from Alabama has been arrested for allegedly hacking the U.S. Securities and Exchange Commission’s (SEC) social media account and posting a fake announcement about the approval of spot Bitcoin exchange-traded funds (ETFs).
According to prosecutors, Eric Council Jr. of Athens, Alabama, used a “SIM swapping” technique to gain unauthorized access to the SEC’s X account in January. Council then transferred control of the account to unnamed co-conspirators, who used it to post the fraudulent announcement.
This fraudulent post caused Bitcoin’s price to spike by over $1,000 before dropping by $2,000 once the hoax was revealed.
The FBI and U.S. Attorney Matthew Graves said in a statement on Friday (April 8) that Council obtained personal information about a victim to carry out the SIM swap. He reportedly used a fake ID at a cell phone store in Huntsville, Alabama, to obtain a SIM card linked to the victim’s phone number, which he then used to access the SEC’s social media account.
Council shared the access codes with his co-conspirators, who used the SEC account to falsely announce the approval of Bitcoin ETFs under the guise of the SEC Chairman. Following the scheme, Council was paid in Bitcoin and later returned the iPhone he used to execute the hack. Authorities discovered he conducted online searches about FBI investigations, indicating his awareness of the potential consequences of his actions.
“These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses and the leak of sensitive personal and private information,” said Graves.
“Here, the conspirators allegedly used their illegal access to manipulate financial markets. Through indictments like this, we aim to hold accountable those who commit these serious crimes.”
The arrest comes amid increasing concerns about North Korean hackers targeting Bitcoin ETF issuers and crypto firms, as reported by CNF. The FBI has warned crypto firms to be on high alert and to take immediate steps to secure their networks.
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