Man Arrested for Alleged Role in SEC Social Media Account Hack Which Led to Bitcoin Price Spike

Arrest and Allegations

An individual from Alabama is taken into custody for his alleged involvement in the hacking incident at the U.S. Securities and Exchange Commission that resulted in a significant increase in the value of bitcoin.

An incident occurred in January where the price of bitcoin experienced a sudden surge after hackers broke into the SEC’s account on a popular social media platform and falsely announced the approval of bitcoin exchange-traded funds.

Charges and Details

Accusations and the Modus Operandi Revealed

Eric Council Jr., a 25-year-old resident of Athens, is accused of assisting in the breach of the SEC’s account on a prominent social media platform, which led to false information regarding the approval of bitcoin ETFs being disseminated.

Reports indicate that Council orchestrated a “SIM swap” by using deceptive means to obtain access codes to the SEC’s account and collaborating with others to execute the misleading post.

Unfortunate Consequences

Impact on Bitcoin Price and Subsequent Events

Following the unauthorized post, the value of bitcoin briefly spiked, only to decline sharply after SEC Chairman Gary Gensler clarified that the announcement was unauthorized and that bitcoin ETFs had not been approved for listing on national securities exchanges.

Subsequently, the actual approval for the first bitcoin-holding exchange-traded funds was granted by the SEC the following day, stabilizing the market after the initial confusion.