Man facing up to five years in prison for hijacking SEC’s X account to pump Bitcoin
An individual in Alabama now faces potential imprisonment for up to five years due to his involvement in taking control of the X account belonging to the US Securities and Exchange Commission (SEC). This person, Eric Council Jr., has confessed to charges of identity theft and access device fraud for his part in falsely asserting that the SEC approved Bitcoin exchange-traded funds, resulting in a significant jump in the price of Bitcoin. However, this spike was short-lived, as the then-chairman of the SEC, Gary Gensler, quickly refuted the fraudulent claim using his personal account, causing the currency to plummet once again.
The issue of Bitcoin exchange-traded funds has long been a contentious topic within the cryptocurrency industry, with many advocating for its approval as a safer means for everyday traders to invest in digital currency without the need to physically possess it or conduct transactions through specific exchanges. The appeal of Bitcoin ETFs lies in the reduced risk for investors, as they do not have to handle the currency directly or face common security breaches that are prevalent in the industry.
According to reports from the Justice Department, Council and his associates employed a method known as SIM swapping to gain unauthorized entry into the SEC’s account, a tactic that involves manipulating customer service representatives of phone carriers to transfer a victim’s phone number to a new device. By leveraging personal information obtained online, the perpetrators were able to deceive the representatives into believing they were the targeted individuals, thereby obtaining control over the account and its associated services.
SIM swapping has emerged as a prominent concern in recent years due to its role in high-profile incidents such as the 2020 Twitter hack, where influential figures had their accounts compromised for cryptocurrency scams. The inherent vulnerability of cryptocurrency wallets, coupled with their lack of FDIC insurance protection, makes them an attractive target for fraudsters seeking to capitalize on the irreversible nature of cryptocurrency transactions. President Trump’s stance on cryptocurrencies and the regulatory environment further exacerbate these risks, with the absence of traditional banking oversight enabling illicit activities to thrive within the sector.
Council’s involvement in the X account hijacking scenario saw him facilitating the unauthorized access to the platform, yet leaving the execution of the false statement to his co-conspirators, who rewarded Council with Bitcoin for his role in the scheme. The subsequent price fluctuations in Bitcoin, following the dissemination and correction of the fake announcement, underscore the potential financial gains associated with market manipulation in the cryptocurrency realm. Council now faces the prospect of a lengthy prison sentence pending his sentencing, though the investigation remains ongoing to identify and hold all involved parties accountable.
