FBI arrests man for SEC social media hack over faux Bitcoin ETF approval submit

The FBI arrested the person allegedly accountable for hacking the US Securities and Alternate Fee’s (SEC) X account and utilizing it to make a faux submit concerning the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) within the US in January.

In keeping with a assertion by the US Lawyer’s Workplace for the District of Columbia, the person’s identification is Eric Council Jr., a 25-year-old from Athens, Alabama. The faux announcement resulted in BTC’s worth spiking $1,000, earlier than crashing by $2,000 after the SEC regained management of the account and issued a correction.

Council is charged with conspiracy to commit aggravated identification theft and entry gadget fraud. The FBI revealed that the assault was executed by a SIM swap, the place Council and co-conspirators manipulated a sufferer’s cellphone quantity to entry the SEC’s X account.

Assault paid in Bitcoin

In keeping with the indictment, Council used stolen private data to forge a faux ID doc to conduct the SIM swap, which gave him entry to the SEC’s social media account.

SIM Swap is a social engineering assault vector consisting of a foul actor who makes use of the sufferer’s private data to trick cell service suppliers into porting the cellphone quantity to a brand new SIM chip.

Thus, the hackers acquire entry to each platform the place the sufferer makes use of its cell quantity as login credentials. Council allegedly offered the faux ID at a mobile phone supplier retailer in Alabama.

After posting the fraudulent message, Council obtained cost in Bitcoin for his function and shortly returned the gear used within the assault.

U.S. Lawyer Matthew M. Graves emphasised the significance of holding these accountable who manipulate markets by cybercrime. The Justice Division, the FBI, and the SEC’s Workplace of Inspector Common led the investigation.

Millionaire crypto losses

SIM swap assaults are additionally a regular assault vector utilized by hackers to steal crypto. In 2017, investor Michael Terpin misplaced $24 million after a foul actor compromised considered one of his wallets utilizing this technique.

Furthermore, a gaggle of three people allegedly stole over $400 million in crypto between March 2021 and April 2023 through the use of SIM swap assaults to achieve entry to wallets.

As reported by Ars Technica, the group used the identical technique allegedly utilized by Council, printing faux ID playing cards and utilizing them to pose as victims in mobile phone service supplier shops.