The FBI arrested the person allegedly liable for hacking the US Securities and Trade Fee’s (SEC) X account and utilizing it to make a pretend publish concerning the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) within the US in January.
In line with an announcement 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 pretend 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 system fraud. The FBI revealed that the assault was executed by 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 line with the indictment, Council used stolen private data to forge a pretend 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 nasty actor who makes use of the sufferer’s private data to trick cell service suppliers into porting the telephone quantity to a brand new SIM chip.
Thus, the hackers achieve entry to each platform the place the sufferer makes use of its cell quantity as login credentials. Council allegedly offered the pretend ID at a cellular phone supplier retailer in Alabama.
After posting the fraudulent message, Council obtained fee in Bitcoin for his position and shortly returned the tools 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 Normal led the investigation.
Millionaire crypto losses
SIM swap assaults are additionally a normal assault vector utilized by hackers to steal crypto. In 2017, investor Michael Terpin misplaced $24 million after a nasty actor compromised one in every of his wallets utilizing this methodology.
Furthermore, a bunch 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 methodology allegedly utilized by Council, printing pretend ID playing cards and utilizing them to pose as victims in cellular phone service supplier shops.
