FBI Arrests Hacker in SEC X Breach and Fake Bitcoin ETF Post That Triggered Price Surge

Cryptonews Dante Raeburn October 18, 2024

FBI Arrests Hacker in SEC X Breach and Fake Bitcoin ETF Post That Triggered Price Surge

The FBI has arrested Eric Council Jr. for hacking the SEC’s social media account through a SIM swapping scheme, which resulted in a fake Bitcoin ETF announcement that artificially inflated Bitcoin’s price. This incident underscores the serious implications of SIM swapping fraud in the context of cybersecurity and financial market manipulation.

The Federal Bureau of Investigation (FBI) has apprehended Eric Council Jr., a 25-year-old resident of Athens, Alabama, in connection with a breach of the U.S. Securities and Exchange Commission’s (SEC) social media account. This breach involved the use of a SIM swapping scheme that resulted in a fraudulent post regarding the approval of Bitcoin exchange-traded funds (ETFs), causing a temporary surge in Bitcoin’s market price. According to U.S. Attorney Matthew Graves, Council executed the SIM swapping technique in January by deceiving a service provider into relinquishing control of a victim’s mobile phone. This fraudulent access enabled Council to take over the SEC’s social media account, subsequently leading to a false announcement about the approval of spot Bitcoin ETFs, which temporarily inflated Bitcoin’s price by more than $1,000 before crashing by $2,000 once the deception was uncovered. Investigators revealed that Council obtained private information of the victim through unscrupulous means and utilized a counterfeit identification document at a telecommunications store in Huntsville, Alabama, to procure a SIM card associated with the victim’s number, thus facilitating access to the SEC account. After sharing the access credentials with collaborators, Council was compensated in Bitcoin and subsequently returned the iPhone used in the operation. Further investigations indicated that he conducted searches concerning FBI probes, highlighting his awareness of the potential repercussions of his illicit activities. The FBI’s actions underscore a vigorous stance against financial malfeasance and cybersecurity threats, particularly emphasizing the dangerous implications of SIM swapping tactics that can lead to substantial financial loss and the compromise of confidential information. Graves clarified: “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. 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.” As a result of this incident, Bitcoin is presently trading at $67,807.04, reflecting a daily increase of 0.85% and an 11.21% rise over the preceding week.

The incident involving Eric Council Jr. represents a significant concern within the realm of cybersecurity and financial market integrity. SIM swapping has emerged as a prevalent method by which cybercriminals exploit personal information to gain unauthorized access to sensitive accounts, including social media and financial platforms. The repercussions of such breaches extend beyond individual victimization, threatening the stability of financial markets, as evidenced by the price fluctuations following the fraudulent announcements related to Bitcoin ETFs. The SEC plays a crucial role in regulating the securities industry, and breaches to its communication channels can erode public trust in financial systems.

The FBI’s arrest of Eric Council Jr. culminates in a critical reminder of the vulnerabilities present within digital security frameworks and the dire consequences of financial manipulation. The incident not only highlights the rampant issue of SIM swapping fraud but also reinforces the commitment of law enforcement agencies to address cybercrimes that impact both individuals and market integrity. As the cryptocurrency landscape continues to evolve, vigilance against such breaches will be paramount to safeguarding investors and maintaining trust in financial institutions.

Original Source: www.crypto-news-flash.com