The FBI arrested the person allegedly answerable for hacking the US Securities and Change 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 accordance with an announcement by the US Legal professional’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 value 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 machine fraud. The FBI revealed that the assault was executed by way of a SIM swap, the place Council and co-conspirators manipulated a sufferer’s telephone quantity to entry the SEC’s X account.
Assault paid in Bitcoin
In accordance with the indictment, Council used stolen private info 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 info to trick cell service suppliers into porting the telephone 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 introduced the faux ID at a cellphone supplier retailer in Alabama.
After posting the fraudulent message, Council obtained fee in Bitcoin for his function and shortly returned the gear used within the assault.
U.S. Legal professional Matthew M. Graves emphasised the significance of holding these accountable who manipulate markets by way of cybercrime. The Justice Division, the FBI, and the SEC’s Workplace of Inspector Normal led the investigation.
Millionaire crypto losses
SIM swap assaults are additionally a standard 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 methodology.
Furthermore, a gaggle of three people allegedly stole over $400 million in crypto between March 2021 and April 2023 by utilizing SIM swap assaults to achieve entry to wallets.
As reported by Ars Technica, the group used the identical methodology allegedly utilized by Council, printing faux ID playing cards and utilizing them to pose as victims in cellphone service supplier shops.
