Importance Score: 82 / 100 🟢
Hacker Sentenced for SEC’s X Account Breach, Bitcoin ETF Misinformation
Eric Council Jr., 26, received a sentence of 14 months imprisonment and three years of supervised release on Friday for his involvement in the cyber attack targeting the U.S. Securities and Exchange Commission’s official X account. The hack resulted in the spread of false information regarding Bitcoin exchange-traded funds (ETFs), temporarily influencing cryptocurrency prices.
The U.S. Department of Justice (DOJ) communicated the sentencing via a press statement. Council, along with accomplices, compromised the SEC’s X account in 2024 to disseminate a fabricated announcement stating the agency had authorized Bitcoin ETFs. This deceitful action triggered a surge in the cryptocurrency’s valuation, followed by a subsequent decline.
Details of the Cyber Attack
The DOJ’s investigation revealed that Council and his associates executed a SIM swap attack on the mobile phone account of an individual authorized to access the SEC’s X account. This maneuver enabled the hackers to commandeer the target’s phone number.
Gaining Control Through Password Reset
Utilizing the compromised phone number, the hackers initiated a password reset on the SEC’s X account, effectively seizing control of the agency’s social media presence.
Impact of the False Announcement on Bitcoin ETFs
- The illicit access allowed the dissemination of misinformation.
- A false announcement regarding Bitcoin ETF approval was posted.
- The price of Bitcoin experienced a temporary surge following the fake announcement.