FBI Detains Suspected SEC Cyber Intruder Linked to False Bitcoin ETF Announcement
The FBI apprehended Eric Council Jr. for allegedly hacking the SEC's account to disseminate false information about Bitcoin ETFs, leading to a significant market manipulation.
The FBI announced on Thursday the arrest of a 25-year-old man, Eric Council Jr., for his alleged involvement in hacking the Securities and Exchange Commission (SEC)'s X account. This breach permitted a false post claiming that bitcoin exchange-traded funds (ETFs) received approval.
According to a press release from the U.S. government, Council, a resident of Athens, Alabama, worked with unidentified associates to seize control of the SEC's X account. Once they accessed it, Council transferred control to co-conspirators who published the misleading tweet.
On January 9, a message from the SEC's X account stated "approval for #Bitcoin ETFs for listing on all registered national securities exchanges," which led to a temporary surge of $1,000 in bitcoin's price. The cryptocurrency subsequently plummeted by $2,000 after the SEC regained account access, retracted the tweet, and labeled it false.
Interestingly, the SEC did indeed approve the ETFs the following day. Council allegedly received payment in bitcoin for facilitating the takeover of the account, according to the FBI.
