Crypto

FBI Arrests Hacker Linked to SEC Bitcoin ETF X hack

The Federal Bureau of Investigation (FBI) arrested a 25-year-old man from Athens, Alabama, in reference to a January hack of the U.S. Securities and Alternate Fee’s (SEC) official X account (previously Twitter).

In accordance with a statement launched on October 17, Eric Council Jr. was arrested on suspicion of conspiring to commit entry machine fraud and aggravated identification theft.

Eric Council Jr. is accused of being a part of a gaggle that hacked the SEC’s X account in January 2024, posting a fraudulent message claiming the SEC had accepted the primary Bitcoin exchange-traded funds (ETFs). This false announcement induced Bitcoin’s worth to spike by over $1,000, leading to important market disruption.

SEC Chair Gary Gensler refuted the report nearly fifteen minutes later, saying the regulator’s account had been compromised and that the fee had “not accepted the itemizing and buying and selling of spot bitcoin exchange-traded merchandise.”

Utilizing a “SIM swap” assault, the group tricked a cellular service supplier into transferring a sufferer’s cellphone quantity to the Council’s SIM card. This allowed them to bypass safety measures and concern the false tweet. 

U.S. Lawyer Matthew Graves highlighted the hazards of SIM swapping schemes, the place fraudsters acquire management of victims’ telephones, resulting in important monetary losses and breaches of private data.

He emphasised, “Right here, the conspirators allegedly used their unlawful entry to a cellphone to govern monetary markets. Via indictments like this, we are going to maintain accountable those that commit these critical crimes.”

Council reportedly used on-line aliases, together with “Ronin”, “Easymunny,” and “AGiantSchnauzer,” and created a faux identification card utilizing private data obtained from co-conspirators.

He acquired a brand new iPhone and a SIM card linked to the sufferer’s cellphone line, which enabled him to entry the SEC’s account and share the entry codes together with his accomplices. In change for his function within the operation, the Council obtained cost in Bitcoin.

As a part of the FBI investigation, Eric Council Jr. reportedly looked for data on the SEC hack, SIM swapping, and indicators of being below FBI investigation.

Authorities allege that he unlawfully accessed the SEC’s X account through the use of the stolen identification of a certified particular person to take management of their cellphone quantity. This entry enabled him and his co-conspirators to submit a fraudulent announcement that misled the general public concerning the approval of Bitcoin ETFs.

The investigation was carried out by a number of companies, together with the FBI’s Washington Discipline Workplace and the SEC’s Workplace of Inspector Common.

Following the fraudulent tweet, the SEC approved 11 Bitcoin ETFs the day after the incident, with these funds now managing over $63.5 billion in belongings. Council is predicted to make his preliminary court docket look within the Northern District of Alabama at the moment.



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