Alabama Man Admits to SEC Hack That Triggered Bitcoin Price Surge

A man from Alabama has admitted to hacking the U.S. Securities and Exchange Commission’s (SEC) X account in a scheme that led to a false Bitcoin ETF approval announcement.

His actions, which briefly caused Bitcoin’s price to surge before plummeting, could result in a prison sentence of up to five years.

According to the Department of Justice (DOJ), 25-year-old Eric Council Jr. collaborated with others in January 2024 to gain control of the SEC’s social media account.

The unauthorized post falsely claimed that spot Bitcoin ETFs had been approved in the U.S., sending Bitcoin’s price soaring by over $1,000 before it tumbled more than $2,000 once the SEC clarified the announcement was fraudulent. The real ETF approvals came shortly after the breach.

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Authorities state that Council executed the hack using a SIM-swapping attack, a tactic that involves tricking a mobile provider into transferring a victim’s phone number to a different device. He allegedly received Bitcoin as payment for using a stolen identity linked to someone with access to the SEC’s account, while his accomplices ultimately published the misleading post.

Council has pleaded guilty to conspiracy charges related to identity theft and fraud. His sentencing is set for May, where he could face a maximum of five years behind bars.

Alexander Stefanov