Eric Council Jr., a 25-year-old from Alabama, was arrested for hacking the SEC’s X account, falsely claiming Bitcoin ETF approval, which temporarily increased Bitcoin’s price by $1,000. The SEC quickly responded to clarify the misinformation, resulting in a subsequent $2,000 drop in Bitcoin’s value. Council is facing serious charges for his involvement in the breach, which utilized SIM swapping techniques.

Eric Council Jr., a 25-year-old resident of Alabama, has been apprehended on grounds of unauthorized intrusion into the Security and Exchange Commission’s X account, which led to a significant, albeit temporary, increase in Bitcoin’s market value. The hack occurred on January 9, one day prior to an anticipated decision by the SEC regarding the approval of spot Bitcoin exchange-traded funds (ETFs). The compromised post falsely announced the grant of approval for the ETFs, leading to a surge in Bitcoin’s price by $1,000. Within 25 minutes, the Securities and Exchange Commission’s Chair, Gary Gensler, clarified via his personal account that the information disseminated was inaccurate, stating there had been no approval for such ETFs. Following this rectification, Bitcoin’s price plummeted by $2,000.

In the realm of cybersecurity and financial regulation, incidents like the one involving Eric Council Jr. highlight the vulnerabilities that institutions face, particularly from sophisticated hacks involving techniques such as SIM swapping. Such methods allow perpetrators to gain unauthorized access to secure accounts by manipulating telecommunication networks. The impact of misinformation in financial markets can be profound, as evidenced by the rapid fluctuations in Bitcoin’s price triggered by Council’s fraudulent claim regarding ETF approval.

In conclusion, the case against Eric Council Jr. underscores the serious implications of cyber crime on financial markets and the regulatory frameworks designed to protect them. The fraudulent act not only misled investors but also resulted in significant monetary losses after the market corrected itself. If convicted, Council may face severe penalties, illustrating the legal ramifications that arise from such cyber offenses.

Original Source: btctimes.com

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