FBI agents arrested a 25-year-old man from Alabama on Thursday morning in connection with a January hack involving the Securities and Exchange Commission’s X account, according to an announcement by the Department of Justice. This incident caused the price of bitcoin to surge by over $1,000.
The individual, identified as Eric Council Jr., faces charges of conspiracy to commit aggravated identity theft and access device fraud. The DOJ alleges that Council collaborated with others to breach the SEC’s account and posted a fraudulent tweet using the identity of the agency’s chairman on January 9. The tweet falsely claimed, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”
Following the counterfeit message, the price of bitcoin increased significantly by more than $1,000. The SEC quickly regained control of its social media account and clarified that the tweet was false and resulted from a hack.
The Department of Justice noted that after the SEC’s correction, the value of bitcoin dropped by more than $2,000 per bitcoin. This incident took place during a period when the SEC was deliberating the approval of exchange-traded funds involving the cryptocurrency.
Further developments are expected as the situation evolves.
