A 25-year-old Alabama man was arrested on Thursday for hacking the U.S. Securities and Change Fee’s X account this 12 months as a part of an alleged conspiracy to govern bitcoin costs, U.S. prosecutors mentioned.
In January, a hacker posted false information on the SEC’s @SECGov X social media account asserting the company had accredited bitcoin exchange-traded funds, inflicting the value of the cryptocurrency to spike. The company rapidly disavowed and deleted the publish.
The incident sparked criticism of the SEC, the highest U.S. markets regulator, and renewed considerations over safety on X because it was acquired by billionaire Elon Musk in October 2022.
Eric Council Jr. of Athens, Alabama, was arrested in reference to the “SIM-swapping” hack, the U.S. Lawyer’s workplace for the District of Columbia mentioned in an announcement.
A lawyer for Council didn’t instantly reply to requests for remark.
The SEC mentioned it appreciated the FBI’s work.
“The SEC thanks regulation enforcement for his or her vigilance in looking for accountability for the breach of the SEC’s X account,” mentioned a spokesperson.
Federal prosecutors allege that Council assisted unnamed co-conspirators who had recognized a sufferer with entry to the SEC’s X account – dubbed “C.L.” They instructed Council on how one can swap the sufferer’s telephone to a brand new system after which used the entry to publish the bogus message on the SEC’s account.
The publish on X brought on bitcoin costs to spike by $1,000. Council later acquired bitcoin cost for the SIM swap and shortly after he drove to Birmingham, Alabama, to return the iPhone, in line with the Justice Division.
Council subsequently carried out web searches for phrases corresponding to “what are some indicators that the FBI is after you” and appeared for details about deleting accounts maintained on the encrypted messaging app Telegram, prosecutors allege.
Council has been charged with conspiracy to commit aggravated identification theft and entry system fraud, in line with the indictment.
The day after the hack, the SEC formally accredited the bitcoin ETFs, which have introduced the cryptocurrency additional into the mainstream.
Picture: AP Picture/Charlie Neibergall, File
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