An man has admitted hacking the official X account of the US Securities and Exchange Commission.
Eric Council Jr, of Alabama, admitted an unauthorized takeover of the account that resulted in a fraudulent post that briefly spiked the value of Bitcoin (BTC) by over $1,000.
The attack took place when hackers gained control of the SEC’s X account and posted a false message under the name of the then-SEC Chairman.
The message falsely claimed the SEC had approved a Bitcoin Exchange-Traded Fund (ETF), a decision eagerly awaited by the market.
This announcement caused Bitcoin’s price to surge by more than $1,000 per coin.
However, the SEC quickly regained control of its account and confirmed that the post was fake, the result of a security breach. Following this correction, the value of Bitcoin dropped by more than $2,000.
How the Hack Was Carried Out
Council, 25, of Athens, Alabama, used a technique known as a Subscriber Identity Module (SIM) swap to gain access to the SEC’s social media account.
A SIM swap involves tricking a cell phone carrier into transferring a legitimate user’s phone number to a new SIM card controlled by a hacker.
- SIM Swap: Council convinced a carrier to switch a victim’s phone number to a SIM card he controlled.
- Fake ID: Using a fraudulent identification card, Council impersonated the victim to access their phone number and, eventually, the SEC’s account.
Council’s co-conspirators then accessed the SEC’s X account and posted the false announcement. In exchange for his role in the scheme, Council received payment in Bitcoin.
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Charges and Legal Consequences
Council admitted to conspiracy to commit aggravated identity theft and access device fraud.
He faces a maximum sentence of five years in prison.
His sentencing is set for May 16, and the judge will determine the sentence based on federal guidelines and other factors.
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What’s Next for the Hackers?
This case highlights the risks associated with SIM swap attacks, a growing threat in the digital age. With the rise in cryptocurrency investments and market-sensitive news, hackers are finding new ways to manipulate digital markets.
Key Takeaways:
- Hackers took control of the SEC’s social media account and posted fake information about Bitcoin.
- Bitcoin’s value spiked by over $1,000 following the fake post but fell again after the correction.
- Council used SIM swap techniques and fake IDs to impersonate the victim and access the SEC account.
- The hacker faces up to five years in prison for his role in the scheme.
As authorities continue to crack down on cybercrime, the case serves as a reminder of the vulnerabilities within digital systems, especially in high-stakes markets like cryptocurrency.
