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FBI Arrests Alleged SEC Hacker Linked to Fake Tweet Saying Bitcoin ETFs Were Approved
Eric Council Jr. allegedly hijacked the SEC's X account and then handed control to unnamed co-conspirators, whose fake post drove up bitcoin's price.
The Federal Bureau of Investigation on Thursday said it arrested a 25-year-old man for his role in the alleged hack of the Securities and Exchange Commission's X account to falsely post the agency had approved bitcoin exchange-traded funds.
Eric Council Jr., of Athens, Alabama, conspired with others to take over the X account, according to a Thursday press release from the U.S. government. After gaining access to the account, he passed control off to unnamed co-conspirators who issued the false tweet.
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On Jan. 9, a post on SEC's X declared "approval for #Bitcoin ETFs for listing on all registered national securities exchanges," causing bitcoin to quickly jump $1,000 in price. The cryptocurrency then cratered $2,000 when the SEC regained control of its account, deleted the post and declared it false.
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The SEC did end up approving the ETFs the next day.
Council was paid in bitcoin for orchestrating the account takeover, according to the FBI.
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