- A hacker used a SIM swap scheme to hack the SEC’s social media account, resulting in a fake message about a Bitcoin ETF and a brief spike in prices.
- The FBI’s arrest signals a decisive crackdown on financial market manipulation and cybersecurity breaches, highlighting the seriousness of SIM swapping scams.
Following recent cryptocurrency news, including an FBI warning about North Korean hackers targeting Bitcoin ETF issuers and cryptocurrency firms, as reported by CNF, Eric Council Jr., a 25-year-old Athens, Alabama resident, was arrested for allegedly hacking an SEC account. and US Exchanges (SEC) on social media.
Prosecutors allege that in January, the Board used “SIM swapping” to gain unauthorized access to X’s SEC account. US Attorney Matthew Graves said:
SIM swapping schemes like these, where scammers trick telecom operators into giving them control of unsuspecting victims’ phones, can result in devastating financial losses and the leakage of sensitive personal and private information. In this case, the conspirators allegedly used their illegal access to manipulate financial markets. Through indictments like these, we seek to bring to justice those who commit these serious crimes.
He then handed over control to unnamed co-conspirators, who posted a false advertisement claiming to be a Bitcoin spot exchange-traded fund (ETF). This fraudulent message caused the price of Bitcoin to jump by more than $1,000 and then drop by $2,000 once the scam was exposed.
Circuit details and consequences
The FBI and U.S. Attorney Matthew Graves explained that the Council obtained the victim’s personal information in order to carry out SIM swapping. He reportedly used a fake ID at a cell phone store in Huntsville, Alabama, to obtain a SIM card linked to the victim’s phone number, which he then used to access the SEC’s social media account.
The board shared the access codes with its co-conspirators, who used the SEC account to falsely announce the approval of a Bitcoin ETF under the guise of the SEC chairman. After the scheme was carried out, the Council was paid in Bitcoin and later returned the iPhone it used for the hack. Authorities found that he conducted online searches for information about FBI investigations, indicating he was aware of the potential consequences of his actions.
U.S. Attorney Graves emphasized the seriousness of such SIM swapping schemes, saying these fraudulent activities can lead to financial manipulation and privacy violations. The arrest signals that the government will seek serious legal consequences for financial crimes involving market manipulation and cybersecurity breaches.
Against the backdrop of these events, the Bitcoin (BTC) rate is currently trading at $67 807,04having climbed to 0,85 % for the last day and at 11.21 % for last week.
