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The hacker behind the account compromise of the US Securities and Exchange Commission (SEC) X account is now facing jail time.
Eric Council Jr, 26, from Huntsville, Alabama, will spend 14 months in prison and three years of supervised release for taking over the X account of the US SEC back in January.
Council Jr, according to court documents, “conspired” with a number of other individuals to influence the cryptocurrency market by falsely announcing the SEC approval of bitcoin (BTC) exchange-traded funds (ETFs).
“Today the SEC grants approval to Bitcoin ETFs for listing on registered national security exchanges,” said the post.
“The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.”
The post also included a fake quote from SEC chair Gary Gensler, which said: “Today’s approval enhances market transparency and provides investors with efficient access to digital asset investments within a regulated framework.”
Thanks to the SEC X accounts’ large audiences of almost 600,000 followers (599.6k), news spread quickly, causing bitcoin prices to briefly spike by US$2,000 per bitcoin.
The attack was launched through a SIM swap attack, according to the Department of Justice (DOJ).
“A SIM swap refers to the process of fraudulently inducing a cell phone carrier to reassign a cell phone number from the legitimate subscriber or user’s SIM card to a SIM card controlled by a criminal actor,” the DOJ wrote at the time.
Now, Council Jr has been sentenced and sent to prison.
“Council and his co-conspirators used sophisticated cyber means to compromise the SEC’s X account and posted a false announcement that distorted important financial markets,” said Matthew R. Galeotti, head of the Justice Department’s criminal division.
“Prosecuting those who seek to enrich themselves by threatening the integrity of digital assets through fraud is critical to protecting US interests. The Department of Justice is committed to holding accountable individuals who commit cyber fraud and harm investors.”
US Attorney Jeanine Pirro for the District of Columbia said: “Schemes of this nature threaten the health and integrity of our market system.”
“SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies. Don’t fool yourself into thinking you can’t be caught. You will be caught, prosecuted, and will pay the price for the damage your actions create.”
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