FBI Arrested A Man For Alleged Hack Of SEC X Account Leading To Bitcoin Price Spike
Prosecutors allege that Council received the victim’s details and a template for a fake identification card from co-conspirators.
An Alabama man has been arrested in connection with the January hack of the U.S. Securities and Exchange Commission’s (SEC) X (formerly Twitter) account, which led to a false announcement about Bitcoin exchange-traded funds (ETFs) and caused a spike in Bitcoin's price.
Eric Council Jr., 25, was taken into custody on Thursday morning by the Federal Bureau of Investigation (FBI). He faces charges of conspiracy to commit aggravated identity theft, according to the Department of Justice.
The fake post on January 9 claimed, “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges,” causing Bitcoin’s value to spike from about $46,730 to just under $48,000. However, the SEC quickly denied the claim, and Bitcoin’s price fell to around $45,200. The following day, the SEC officially approved the first Bitcoin-related ETFs, but the damage from the hack had already been done.
Prosecutors allege that Council received the victim’s details and a template for a fake identification card from co-conspirators. He then used this information to obtain a SIM card and purchase a new iPhone to complete the swap, ultimately allowing his accomplices to issue the false post on the SEC's account.
The hack followed a prolonged legal battle over the approval of Bitcoin ETFs, which were officially greenlit shortly after the incident. These ETFs have since attracted over $20 billion in inflows and are currently valued at around $64.5 billion.
Council faces charges in federal court in Washington, D.C., including conspiracy to commit aggravated identity theft and access device fraud. If convicted, he could face penalties. His attorney has yet to publicly comment on the case.
