Hacker's Bitcoin Tweet: What Happened and Why It Matters

Earlier this year, an Alabama man named Eric Council Jr. found himself in trouble with the law. The 25-year-old was arrested for allegedly hacking the Securities and Exchange Commission's (SEC) X account. This wasn't just any hack; Council is accused of posting a fake tweet that claimed the SEC had approved bitcoin exchange-traded funds (ETFs). This false announcement sent bitcoin's price soaring by over $1, 000 in a short time. But the party didn't last long. Once the SEC regained control of its account, the price of bitcoin dropped by $2, 000. So, how did Council pull off this stunt? He used a trick called a "SIM swap. " This involves fraudulently transferring someone's cell phone number to another device, essentially impersonating the original owner. In this case, Council targeted the person whose phone controlled the SEC's social media account.The SEC later acknowledged that their account was compromised through a SIM swap. They also admitted that they had removed multi-factor authentication from the account months before the hack. This extra layer of security could have prevented the incident. After the hack, the SEC added multi-factor authentication back to their account. Eric Council Jr. is now facing serious charges. The FBI arrested him, and he's been charged with one count of conspiracy to commit aggravated identity theft and access device fraud. If found guilty, he could spend up to five years in prison. His first court appearance is scheduled for later this week. This incident raises important questions about cybersecurity and the impact of fake news on the cryptocurrency market. It's a reminder that even trusted sources can be compromised, and the consequences can be significant.