They sentence the hacker to prison who realized the SEC and announced approval of the ETF Bitcoin

The hacker responsible for filtering the approval of the ETFs Bitcoin After taking the X account of the Sec In 2024, he will comply with a sentence for 14 months in prison, this at the rate of accepting the charges against him.

***

• The attacker, Eric Council Jr., used a scheme of Sim Swapping To access the official account of the Sec.
  
• The false publication caused an immediate rise in the price of BTC before official approval.
  
• The Prosecutor’s Office warned that these crimes will be persecuted and punished severely.

The man behind the hacking who committed the official account of the US stock and securities commission (sec) and that falsely spread the approval of funds quoted in the stock market (ETF) Bitcoin in the early 2024, He was sentenced to 14 months in prison.

Eric Council Jr., 26 years old and resident in Alabama, received the sentence this Friday, the Federal Prosecutor’s Office for the Columbia district, As indicated The Block.

The incident that shook the markets

A little over a year ago, the account of the Sec In the social network X it was compromised at a critical moment: just before the agency officially approved the ETFs Bitcoin in cash in January 2024.

The false publication said: “Today the SEC approves the #Bitcoin ETFs for your price in all national stock exchanges of registered values”. The message caused an immediate reaction in the markets, making the price of Bitcoin It will shoot in more than USD $ 1,000 in a matter of minutes, according to prosecutors last October.

Moments later, the then president of the Sec, Gary Gensler quickly confirmed that the account had been compromised, and that the announcement in question was not made by the agency.

He Department of Justice He explained that Council did not act alone. Together with other individuals, he carried out a scheme of “Sim Swapping”social engineering technique through which the attackers take control of a telephone number when transferring it to a card SIM Under your control. This access allowed them to violate authentication systems and control the account of the Sec In X.

Council declared himself guilty in February this year before the conspiracy charges to commit aggravated identity and fraud with access devices. Prosecutors underlined premeditated planning and severity of the damage caused.

A warning from the Prosecutor’s Office

Federal prosecutor Jeanine Ferris Pirro, who was recently appointed by former President Donald Trump to lead the DC office, issued a overwhelming statement on the case.

“Schemes like this threaten the health and integrity of our market system,” Pirro pointed out. “The Sim Swapping puts the financial security of common citizens, financial institutions and government agencies at risk. They are not deceived believing that they will not be trapped. They will be identified, processed and will pay the price for the damages caused.”

Pirro, former New York district and media figure, also remarked that these crimes are not isolated incidents, but signs of growing vulnerabilities in digital systems that support global markets.

The expectation of the moment for the ETFs Bitcoin

ETF approval Bitcoin in cash by the Sec It was one of the most anticipated events of the crypto ecosystem. For years, companies such as Blackrock, Grayscale and Fidelity They pressed to obtain the regulatory approval of products that facilitate institutional exposure to the digital currency.

The official announcement came just one day after Council attack. Despite the damage, Sec He maintained his agenda and gave the ETF green light, marking a milestone for the industry.

The episode served as a reminder of the fragility of official digital communications and the ability of certain malicious actors to momentarily alter the course of global markets.

The case of Eric Council Jr. highlights the risks associated with cybersecurity in high sensitivity environments, especially in regulatory agencies and interconnected financial systems. The ease with which mechanisms such as Sim Swapping can be exploited continues to be a latent concern.

From the legal point of view, the conviction also feels a precedent about the seriousness with which the authorities deal with digital crimes that affect public confidence and financial stability.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Unspash

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

Subscribe to our newsletter