Alabama Resident Arrested for Unauthorized Takeover of SEC Account Leading to Bitcoin Spike

Alabama Man Arrested for Unauthorized Takeover of SEC Account, Causing Bitcoin Spike

In a shocking turn of events, a 25-year-old Alabama resident named Eric Council Jr. has been arrested in connection with the unauthorized takeover of the Security and Exchange Commission’s X account in January. This incident caused the value of Bitcoin to spike $1,000, according to the Justice Department.

The hack occurred on January 9, just a day before the SEC’s highly anticipated approval of spot Bitcoin exchange-traded funds. The hackers used the compromised account to falsely post that the approval had been granted. However, SEC Chair Gary Gensler quickly debunked the claim on his personal account, stating that the post was “unauthorized.”

Despite the phony post being deleted after 25 minutes, the damage was done. Investors rushed to purchase Bitcoin, leading to a $1,000 spike in its price. Once the correction was made, the price fell by $2,000, as per the indictment.

Council, also known online as “Ronin”, “AGiantSchnauzer”, and @Easymunny, is facing charges of conspiracy to commit aggravated identity theft and access device fraud. The indictment alleges that Council and his accomplices manipulated the price of Bitcoin through these criminal activities.

The hackers allegedly accessed the account through a “SIM swap” attack, which involves fraudulently reassigning a cell phone number to a SIM card controlled by the criminal. By impersonating someone with access to the account, they were able to make unauthorized posts.

Council reportedly received payment in Bitcoin for carrying out the SIM swap. During the investigation, federal agents found incriminating searches on his personal computer, including queries about federal identity theft statutes and FBI investigations.

FBI Acting Special Agent in Charge Geist emphasized the seriousness of the situation, stating that the FBI will work tirelessly to hold accountable those who break U.S. laws. If convicted, Council could face up to five years in prison for his involvement in the unauthorized takeover of the SEC account.