FBI arrests Alabama man for SEC X account hack that triggered Bitcoin surge

In a significant development for cryptocurrency regulation, the FBI arrested a 25-year-old man from Alabama, Eric Council Jr., in connection with a January hack of the Securities and Exchange Commission’s (SEC) X account.

This breach resulted in a fabricated tweet that falsely announced the approval of Bitcoin ETFs, causing Bitcoin’s price to spike by over $1,000.

The Department of Justice (DOJ) revealed that the Council is facing serious charges, including conspiracy to commit aggravated identity theft and access device fraud.

The hacking incident unfolded on January 9, when Council, allegedly in collaboration with others, sent a misleading tweet from the SEC’s chairman.

The tweet claimed,

“Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”

This false announcement ignited a surge in Bitcoin’s value, which jumped dramatically in response. However, the SEC quickly regained control of its account and clarified that the tweet was fraudulent, leading to a sharp decline in Bitcoin’s price by over $2,000 shortly thereafter.

This incident occurred amidst the SEC’s deliberations on approving exchange-traded funds (ETFs) that would include cryptocurrencies, raising concerns about market manipulation and security.

The repercussions of the hack not only affected Bitcoin’s value but also highlighted the vulnerabilities in regulatory bodies’ digital communications.

The DOJ’s action underscores the government’s commitment to tackling cybercrime and safeguarding the integrity of financial markets, particularly as the cryptocurrency sector continues to evolve.

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