FBI Arrests Man for Hacking SEC’s Twitter Account

The Federal Bureau of Investigation (FBI) announced Thursday that it has arrested a man in connection with hijacking the Twitter (now X) account of the Securities and Exchange Commission (SEC). And falsely tweeting that the agency had approved Bitcoin ETFs. The fraudulent tweet, posted in January, caused a brief spike in Bitcoin’s price before the announcement was refuted.

Eric Council Jr., a 25-year-old from Athens, Alabama, was arrested on Thursday and charged with hacking the SEC’s Twitter account through a technique known as SIM swapping. This cyberattack allowed him to take control of a phone number associated with the SEC’s account. Ultimately gaining unauthorized access to the platform. Once in control, Council tweeted that the SEC had approved Bitcoin ETFs, sending Bitcoin’s price surging by more than $1,000 before crashing by $2,000 when the news was exposed as false.

SIM Swapping and Market Manipulation

According to authorities, SIM swapping schemes involve fraudsters tricking phone service providers into transferring control of a victim’s phone number to a new SIM card. Allowing the attacker to intercept texts, calls, and two-factor authentication codes. In this case, Council allegedly used the technique to gain access to the SEC’s Twitter account. A move that led to significant market volatility and briefly manipulated the price of Bitcoin.

U.S. Attorney Matthew Graves explained the potential for damage from SIM swapping attacks in a statement: “These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses to victims and leaks of sensitive personal and private information. Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets.”

Graves emphasized that the FBI and law enforcement will continue to take action against those who use such schemes to harm markets and individuals, adding, “Through indictments like this, we will hold accountable those who commit these serious crimes.”

Bitcoin Price Surge and Aftermath

The false tweet about Bitcoin ETFs caused an immediate and dramatic reaction in the market. Bitcoin, which had been trading steadily, surged by more than $1,000 as news of the SEC’s alleged approval spread. Investors and traders jumped on the opportunity. Hoping to capitalize on what appeared to be a significant regulatory breakthrough for the cryptocurrency market.

However, within hours, the SEC and other officials refuted the claim. Making it clear that no such approval had been granted. As a result, Bitcoin’s price quickly plummeted, dropping by $2,000, and leaving many traders reeling from the sudden and unexpected loss.

The incident underscores the susceptibility of both financial markets and public trust to misinformation. Especially when it comes from seemingly legitimate sources such as official social media accounts. The rapid movement in Bitcoin’s price highlights how easily markets can be swayed by false information. Particularly in the volatile world of cryptocurrency.

The Fight Against SIM Swapping and Cybercrime

SIM swapping has become an increasingly common tactic among cybercriminals seeking to steal sensitive information or gain access to high-profile accounts. The technique allows hackers to bypass traditional security measures by taking control of victims’ phone numbers. Making it easier to access accounts protected by two-factor authentication (2FA).

Law enforcement agencies like the FBI have been cracking down on these schemes in recent years, but the incidents continue to pose serious risks. Especially for high-profile figures and organizations. The SEC hack and subsequent false tweet is just one example of the damage that can result from these types of cyberattacks.

The arrest of Eric Council Jr. marks an important step in holding cybercriminals accountable for these types of attacks. With financial markets and personal information at risk. Authorities are increasingly prioritizing efforts to combat SIM swapping and other cybercrimes.

The arrest of Eric Council Jr. for hacking the SEC’s Twitter account and falsely announcing the approval of Bitcoin ETFs serves as a stark reminder of the dangers posed by SIM swapping schemes. The brief surge in Bitcoin’s price and the subsequent market crash demonstrate how easily financial markets can be manipulated through fraudulent information. As law enforcement continues to crack down on cybercrime, the arrest is a significant step toward holding those responsible for these attacks accountable.