Key Points
- Hacker falsely announced Bitcoin ETF approval via SEC’s social media.
- Bitcoin price surged over $1,000 before the hoax was uncovered.
- The hack involved a SIM swap attack to access the SEC’s account.
- Eric Council Jr. faces identity theft and fraud charges for the breach.
A twist most people were not expecting was in January 2024 when a hacker managed to gain access to one of the U.S. Securities and Exchange Commission’s (SEC) social media accounts and posted a fraudulent announcement about the approval of the much-awaited Bitcoin ETF.
Such fake announcements led to the price of Bitcoin jumping by over $1,000, leaving many traders caught flat feet.
The hacker in question was 25-year-old Eric Council Jr who is living in Alabama. He was involved in a SIM swap to seize the SEC’s account on X (formerly Twitter).
Bitcoin ETF trolling was also actively funded by serial spamer Eric Council who posted on SEC approval for trading Bitcoin ETFs on national securities exchanges, which caused artillery fire in the crypto markets.
U.S. says accused SEC hacker caused bitcoin prices to spike over US$1K https://t.co/tVaJ5StTx5 pic.twitter.com/r14DSznuql
— Global National (@GlobalNational) October 17, 2024
The Market Impact of a ‘Bitcoin ETF Approval’ Scam
The Price of Bitcoin Rocketing after a Fake ETF Approval
A sudden $1000 increase in the price of bitcoin was experienced and this was initiated by fake bitcoin approval for ETFs. From approximately $46730 the rise took place to slightly below $48000 within seconds.
The mood in the market was one of high anticipation as traders rushed to respond to what many considered, an important milestone for cryptocurrency.
Nonetheless, the thrill did not last long. Chairman of the SEC Gary Gensler made sure to come back to trim any positive enthusiasm and tweeted from his personal X account that it was not us who recognized any Bitcoin ETF.
His text read as follows: ‘This is what happened: the SEC’s Twitter account has been hacked. The listing and the trading of spot Bitcoin ETFs have not been approved.
After Gensler’s pronouncement, the price of Bitcoin nose dived back to around $45,200 as the market was in shock having waited in vain for the announcement which never was.
SIM Swap’s Role In The Bitcoin ETF Approval Hoax
How The Hack Started And Spread
The Council supposedly committed the SIM swap by stealing someone else’s identity fraudulently, which included accessing SEC social media. He successfully made a sales pitch to a cellphone store claiming that he had an authorized number linked to the target’s SIM and acquired a SIM card for it.
We were able to obtain phone numbers and passwords and take over the SEC’s social media because we managed to access these targets.
Upon doing so, the Council announced the fake approval of the Bitcoin ETF, which immediately set off panic in the market before the fraud was detected.
Apart from misleading many investors and causing sharp increases in the price of Bitcoin, his actions highlighted the thin layers of the crypto market’s dependence on social channels and APIs for the latest updates.
Following the assault, his internet activities displayed clear signs of uneasiness.’ He wondered how to tell if he was the subject of a criminal investigation by law or the FBI even if he was not in direct communication with them.
There are three federal court cases against the Council for conspiracy to commit aggravated identity theft and access device fraud.
The Aftermath of the Creates Market Instability of Bitcoin ETF Rumors
The words were not attributable to the author.
This advertisement exemplifies the sharpness of the crypto market regarding the news of the Bitcoin ETF approval.
The expectations behind the US ETF launch are huge. Just the simple expectation of Bitcoin supposed to be ETF’d cases made Bitcoin price increase by over a thousand dollars, and then drop again when reality proved otherwise.
This advertisement shows the amount of hype that the market has built up towards Bitcoin ETFs, which are seen as the next step in the reality of mainstream cryptocurrency investment and usage.
Although the incorrect statement was enough I expect an Election announced corrected. Otherwise, there would still be the easy explanation, complete together with the rest of the ones he had this turned November destructive for this reason that most rational employers adjusted their position to accommodate the new hopes, which were false for January 10-fifth Day On Day.
