FBI Nabs Hacker Behind Fake US SEC Bitcoin ETF Approval Post

The Federal Bureau of Investigation has arrested the mastermind behind the fake X post that preceded the approval of spot Bitcoin ETF

In a major cybersecurity bust, the US FBI has arrested a 25-year-old man who allegedly hacked the U.S. Securities and Exchange Commission’s (SEC) X account. This news was announced in a press statement released earlier today. 

The US SEC X Hack Plot Unfolds

In January, Eric Council Jr., a resident of Athens, Alabama, allegedly hijacked the SEC’s X account. After taking control, Council reportedly handed over access to unnamed co-conspirators. 

The culprit posted a false message announcing the approval of spot Bitcoin Exchange-Traded Funds (ETFs) for listing on national securities exchanges. The post at the time immediately raised Bitcoin’s price by $1,000 within minutes. 

The excitement surrounding the fake post was short-lived. Once the SEC regained control of its account, it swiftly deleted the tweet. The regulatory agency issued a statement confirming its falsehood. After this post, the market reacted accordingly as Bitcoin plummeted by $2,000. 

Ironically, the SEC approved Bitcoin ETFs the next day, but the damage to market stability and investor trust had already been done.

Interestingly, this approval paved the way for the approval of Ethereum ETF, and speculatively, more ETFs are still loading. Industry players like Canary Capital and Bitwise have already filed for XRP ETF. 

Digital Manipulation in the Crypto Age

Council’s arrest marks a significant victory for authorities in their ongoing battle against cybercrime in the crypto space.

This incident highlights the growing vulnerabilities in digital platforms and the ease with which misinformation can spread. Market leaders try to curb this bad act with strong security measures, transparency, and constant awareness. 

Notably, the quick spike and subsequent drop in Bitcoin’s price shows how sensitive the crypto market is to speculative news, whether real or fabricated.

Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.