In January 2024, an Alabama man named Eric Council Jr. was arrested by the FBI for hacking into the U.S. Securities and Exchange Commission’s (SEC) official X (formerly Twitter) account.
Using a technique known as SIM swapping, he took control of the SEC account and posted a false tweet claiming that the SEC had approved Bitcoin exchange-traded funds (ETFs).
This fake announcement caused Bitcoin’s price to jump by $1,000 before dropping by $2,000 after the SEC confirmed it was fake news.
Council received payment for the hack in Bitcoin and later tried to cover his tracks by disposing of the phone used in the attack.
However, his suspicious internet searches, including how to know if the FBI was investigating him, led to his arrest. He now faces charges related to identity theft and fraud.
FBI Acting Special Agent Geist explained that the FBI is committed to detecting and preventing internet fraud, including a method known as SIM swapping.
SIM swapping involves criminals taking control of someone’s phone number to access personal or business information, which they then use to commit crimes.
In this case, the hacker used SIM swapping to manipulate the global financial market by posting false information. The FBI will continue to work with other law enforcement agencies to catch and prosecute those who violate U.S. laws.
SEC Inspector General Jeffrey added that this arrest demonstrates their commitment to punishing those who attempt to disrupt the financial system.
The U.S. Securities and Exchange Commission (SEC) has postponed the approval of several cryptocurrency exchange-traded funds (ETFs) due to concerns mainly related to market manipulation and investor protection. The SEC is worried that the largely unregulated cryptocurrency markets could expose investors to manipulation and fraud.
Check This Out: Crypto Scammers Evolve with New “Pig Butchering” Tactics
The SEC often states it needs more time to consider the proposed rule changes associated with these ETFs. For example, when delaying decisions on BlackRock’s spot Ethereum ETF and others, the SEC cited the need for adequate time to thoroughly evaluate the implications of these proposals.
The agency can extend its review periods by inviting public comments on the proposals, which can cause further delays. This process allows stakeholders to provide input on the proposed ETFs, contributing to longer decision timelines.
