Is Bitcoin ETF Approved By SEC Or Someone Else? Reality Check

18-10-2024 By: Sakshi Jain

Who Really Approved Bitcoin ETF: SEC or Someone Else? Case Uncovered

Eric Council Jr., 25, of Alabama, was arrested in January 2024 for hacking the SEC's X (formerly Twitter) account. The hack led to a false announcement about Bitcoin ETF approval, causing a temporary surge in Bitcoin's value by $1,000.

What's The Case

Eric Council Jr., a 25-year-old from Athens, Alabama, has been arrested for his involvement in the unauthorized takeover of the U.S. Securities and Exchange Commission’s (SEC) X account in January 2024.

The account was hacked, and a fraudulent post falsely claimed that the SEC had approved the listing of Bitcoin exchange-traded funds (ETFs).

Consequences of False Bitcoin ETF Approval

False Bitcoin ETF Approval caused the price of Bitcoin to spike by $1,000, only to drop by $2,000 when the SEC regained control and confirmed the message as fake.

The indictment alleges that Council and his co-conspirators used a SIM swap attack to access the SEC X account. SIM swapping involves fraudulently transferring a phone number to a new device controlled by the attacker, enabling access to sensitive accounts.

Council allegedly created a fake ID to execute the SIM swap at a store in Alabama. This allowed him to access the SEC’s account and share the access codes with his accomplices. They then posted the fraudulent tweet, which manipulated the market.

Council faces charges of aggravated identity theft and access device fraud, among others. Law enforcement, including the FBI’s Cyber Division and the SEC’s Office of Inspector General, conducted the investigation, which revealed Council received Bitcoin as payment for his role in the crime.

He also tried to cover his tracks by returning the phone used for the attack and searching online for signs of being investigated by the FBI.

Conclusion

Council’s arrest highlights the growing threat of SIM swap attacks in financial markets, where cybercriminals exploit vulnerabilities to manipulate markets. The FBI and SEC remain committed to holding cybercriminals accountable for undermining market integrity.

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