🌎 SEC Hacker’s Arrest Causes Bitcoin Price Spike and Drop

Federal prosecutors are contemplating a plea deal for Eric Council Jr., the Alabama man recently arrested for hacking the X account of the U.S. Securities and Exchange Commission (SEC).

During a hearing on Oct. 25, U.S. attorney Kevin Rosenberg informed U.S. District Judge Amy Berman Jackson that the prosecution is planning a plea deal. However, it remains uncertain whether the offer will be accepted by Council.

The Federal Bureau of Investigations (FBI) arrested Council, 25, last week. According to a press release from the U.S. Attorney’s Office, District of Columbia, the suspect’s hacking and posting of a fake message on the SEC’s X account caused the Bitcoin price to spike by $1,000 as the market reacted.

Details of the SEC X Account Hack

Council, along with others, allegedly used a SIM-swap attack to gain unauthorized access to the SEC’s social media account. This incident occurred during a period of heightened positive sentiment in the crypto industry as it awaited the SEC’s approval of the first spot Bitcoin exchange-traded funds (ETFs) for the U.S. market.

Immediate Market Impact

Once the SEC regained control of its account and confirmed the earlier announcement as fake and the result of a SIM swap attack, crypto prices fell sharply. Sentiment turned negative for Bitcoin (BTC) as its price slipped more than $2,000 within minutes.

Despite the initial turmoil, the SEC eventually approved spot BTC ETFs, leading to a surge in Bitcoin’s price to its all-time high of $73k.

Charges and Allegations

Eric Council faces charges of device fraud and conspiracy to commit aggravated identity theft. He allegedly received payment in BTC from unnamed sources for his successful SIM swap attack.