A 25-year-old Alabama man has pleaded responsible to prices associated to the January 2024 hacking of the US Securities and Alternate Fee’s (SEC) X (previously Twitter) account. This incident briefly prompted a spike within the worth of Bitcoin.
Eric Council Jr., of Athens, Alabama, admitted in court docket to conspiring with others to realize unauthorized entry to the SEC’s official social media account.
The hackers used the compromised account to falsely announce that the SEC had authorised Bitcoin exchange-traded funds (ETFs).
The long-anticipated resolution, when falsely reported, drove the worth of Bitcoin up by over $1000. Shortly after the SEC regained management and refuted the declare, Bitcoin’s worth dropped by greater than $2000.
SIM Swapping and Cybercrime Ways
In line with prosecutors, Council executed a way often known as SIM swapping to take over the SEC’s account. Utilizing stolen private data supplied by co-conspirators, he created a pretend identification card and used it to impersonate a sufferer with entry to the SEC’s X account.
He then visited an AT&T retailer and, claiming to be a federal agent, persuaded workers to switch the sufferer’s cellphone quantity to a SIM card in his possession. With this entry, Council and his associates reset the credentials on the SEC’s X account and posted the fraudulent Bitcoin announcement.
Learn extra concerning the assault: Senators Demand Probe into SEC Hack after Bitcoin Value Spike
Court docket paperwork reveal that Council was compensated in Bitcoin and different cryptocurrencies for his position within the scheme.
His responsible plea consists of prices of conspiracy to commit aggravated identification theft and entry gadget fraud. These crimes carry a most sentence of 5 years in jail. His sentencing is scheduled for Could 16.
Authorized and Monetary Implications
The case is being investigated by the FBI’s Washington Discipline Workplace and the SEC Workplace of Inspector Common. Prosecutors dealing with the case embrace attorneys from the Justice Division’s Prison Division and Fraud Part, together with an assistant US lawyer from the District of Columbia.
The SEC’s social media breach underscores the vulnerabilities of high-profile on-line accounts and the potential penalties of misinformation in monetary markets.
The incident highlights the rising menace of cyber-enabled monetary crimes and the significance of strong safety measures in defending official communications.
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