FBI agents arrested 25-year-old Eric Council Jr. from Alabama on Thursday morning for charges connected to the January hacking of the Securities and Exchange Commission’s (SEC) X account, according to the Department of Justice (DOJ). This cyberattack had significant market repercussions, notably causing the price of bitcoin to surge by over $1,000. Council faces charges of conspiracy to commit aggravated identity theft and access device fraud.
The DOJ accused Council of collaborating with others to compromise the SEC’s account and disseminate a fraudulent tweet impersonating SEC Chairman Gary Gensler. On January 9, the fake message falsely claimed that the SEC had approved Bitcoin ETFs for listing on all registered national securities exchanges, sparking an immediate increase in bitcoin’s value. However, the SEC quickly regained control over its social media account and clarified that the tweet was deceptive and the result of a hack. This announcement led to the bitcoin price plummeting by more than $2,000.
This incident occurred against the backdrop of the SEC’s ongoing deliberations on whether to approve exchange-traded funds (ETFs) holding cryptocurrency. The news comes as a significant development, underscoring the implications of cybersecurity breaches on financial markets. The hacking incident highlights vulnerabilities and raises concerns about the impact of misinformation in highly volatile markets like cryptocurrency. Further updates are expected as the case unfolds.
Original Story https://www.cnbc.com/2024/10/17/sec-hack-bitcoin-price-fbi-arrest-man.html
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