The Federal Bureau of Investigation (FBI) announced Thursday that it has arrested and charged a man with taking over the Securities and Exchange Commission's (SEC) Twitter (also known as Approved Bitcoin ETF. This false statement immediately caused the price of Bitcoin to skyrocket.
Eric Council Jr. of Athens, Alabama, was arrested Thursday and charged with the crime, with authorities saying the 25-year-old used “SIM swapping” techniques to hijack phone numbers and ultimately gain unauthorized access to the SEC's Twitter account. claims to have done so. . Bitcoin's price soared by more than $1,000 soon after, only to plummet by $2,000 when the announcement was denied.
“These SIM swapping schemes, in which fraudsters trick service providers into giving them control of unsuspecting victims’ mobile phones, result in devastating financial losses for victims and compromise sensitive personal information. This could lead to the disclosure of information and personal information,” U.S. Attorney Matthew Graves said in a statement. Here, the co-conspirators allegedly used illegal access to phones to manipulate financial markets, and through these prosecutions, we will hold accountable those who committed these serious crimes. I will. ”
Council, also known as “Ronin,” “AGiantSchnauzer,” and “Easymunny,” allegedly created fake identities using personal information stolen from SEC employees. Council then drove 55 miles east of Athens to Huntsville, Alabama, and used a fake ID to purchase a new SIM card linked to the victim's mobile account.
But the FBI has not said how the SEC employee's information came into the council's possession. Armed with a SIM and a new iPhone, he accessed the SEC's Twitter account and shared his login details with his co-conspirators.
“The Council shared these codes with members of the conspiracy, who accessed the accounts and issued fraudulent tweets to the @SECGov X account in the name of the SEC Chairman, falsely claiming that the SEC had approved the BTC ETF. announced,” the FBI said.
In an apparent attempt to elude law enforcement, Council allegedly drove 160 miles south of Athens to Birmingham, Alabama, to return the iPhone used in the hack.
After the January 9th tweet, Bitcoin soared to $47,680 before plummeting to $45,627, according to data from CoinGecko.
of @SECGov A Twitter account has been compromised and fraudulent tweets have been posted. The SEC has not approved the listing and trading of spot Bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
The FBI recognized the potential consequences of his actions and asked the council, “How do I know for sure if I am being investigated by the FBI?'' and “What are the signs that I am under investigation by law?'' He said he started searching the web with questions like “Is this the case?” Even if you haven't been contacted by the police or FBI. ”
The FBI said defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. However, searching online for tips on how to tell if the FBI is investigating probably won't help his case.
If convicted, Council could face up to 15 years in federal prison for identity theft alone and three years in federal prison for impersonating a federal agency.
“Today's arrests demonstrate our commitment to holding accountable the bad actors who undermined the integrity of our financial markets,” SEC Inspector General Deborah Jeffrey said in a statement.
Of course, the SEC did eventually announce trading approval for Bitcoin ETFs, but only one day later, on January 10th.
Edited by Andrew Hayward
Editor's note: This article was updated with additional details after publication.
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