Alabama Man Arrested for SEC Hack Leading to Bitcoin Price Surge

Arrest Made in Connection to SEC X Account Hack

Details of the Arrest

An individual from Alabama has been detained by FBI agents regarding the breach of the Securities and Exchange Commission’s X account on January 9. This incident resulted in a significant increase in the value of bitcoin.

Charges and Allegations

Accusations Against Eric Council Jr.

The accused, identified as Eric Council Jr., is facing charges of conspiracy to commit aggravated identity theft and access device fraud. It is alleged that Council orchestrated a SIM swap attack to obtain access codes to the SEC X account.

Impact on Bitcoin Price and SEC’s Response

Bitcoin Price Surge and SEC’s Reaction

Upon gaining control of the account, Council’s associates posted a fake tweet claiming SEC’s approval for Bitcoin ETFs, leading to a spike in bitcoin’s value. The SEC promptly responded, clarifying the misinformation and causing a subsequent drop in bitcoin’s price.

Approval of Bitcoin ETFs by SEC

Regulatory Changes Post-Hack

Following the incident, the SEC approved regulatory modifications allowing the creation of bitcoin exchange-traded funds in the country. Council, known by various online aliases, reportedly received bitcoin as compensation for his involvement in the hacking scheme.

Investigative Actions and Legal Ramifications

Searches and Legal Concerns

Furthermore, Council’s online activities post-hack, including searches related to potential FBI investigations, have drawn attention. The Department of Justice emphasized the severity of the hack’s impact, reinforcing the legal consequences for such illicit activities.