US Hacker Sentenced to Prison for Manipulating Bitcoin Prices via SEC’s X Account
In a recent development in cybersecurity law, Eric Council Jr., 26, has been sentenced to 14 months in prison for his involvement in the hack of the U.S. Securities and Exchange Commission’s (SEC) official X account. This incident, which occurred in January 2024, has raised significant concerns regarding digital security and the implications of hacking in financial markets.
Details of the SEC X Account Hack
The U.S. Department of Justice (DOJ) disclosed the sentencing details in an official press release. Council, along with other hackers, orchestrated a takeover of the SEC’s X account, which led to a fraudulent announcement regarding the approval of Bitcoin exchange-traded funds (ETFs).
Impact on Cryptocurrency Prices
This misleading information resulted in a rapid increase in Bitcoin prices, only to see them plummet once the truth was revealed. The incident highlights the potential consequences of such cybercrimes on financial markets.
How the Hack Occurred
The DOJ reported that Council and his accomplices executed a SIM swap attack on an individual who had access to the SEC’s X account. This method involved:
- Gaining control of the victim’s phone number.
- Resetting the password for the SEC’s X account.
- Gaining unauthorized access to the account, which led to the dissemination of false information.
Legal Consequences and Sentencing
As a result of his actions, Council has been sentenced to not only prison time but will also undergo three years of supervised release following his incarceration. This case underscores the serious legal repercussions associated with hacking and cybercrime.
Further Implications for Cybersecurity
The SEC hack serves as a critical reminder of the vulnerabilities that exist in digital communications and the necessity for robust cybersecurity measures. Organizations must prioritize the protection of sensitive information to prevent similar incidents in the future.
For more information on cybersecurity best practices, you can visit Cybersecurity & Infrastructure Security Agency.
Stay informed about the latest developments in cybersecurity and finance by following related news on SEC’s official website.
