FBI arrests hacker suspected of hacking SEC account
Date: 2024-10-18 Author: Gabriel Deangelo Categories: IN WORLD
The incident has had serious consequences for the cryptocurrency market. The suspect was Eric Council, who, according to investigators, conspired with others to gain unauthorized access to the regulator's account.
According to the FBI, Council and his accomplices hacked the SEC account on January 9, 2024, posting a fake message on behalf of the commission's chairman, Gary Gensler. This message stated that the SEC was approving the listing of a bitcoin ETF on all registered US stock exchanges. This information was false, but being published on behalf of an official SEC representative, it caused short-term chaos in the market.
Following the fake post, the price of Bitcoin jumped by $1,000, which was due to the immediate reaction of investors. However, as soon as the SEC issued an official denial of the fake news, the price of the cryptocurrency not only returned to its previous levels, but also fell by more than $2,000. Such a sharp price fluctuation was the result of an information attack, demonstrating how vulnerable financial markets can be to such incidents.
Council was arrested and charged with conspiracy to commit serious financial crimes, identity theft, and digital fraud. This crime became a reminder of the risks and threats in the world of cryptocurrencies and financial markets in the digital age.
Interestingly, this case is reminiscent of an earlier incident involving British hacker Elliot Gunton. Gunton was jailed for 3.5 years at Norwich Crown Court for hacking more than 500 accounts on major US crypto exchange Coinbase in 2018 and 2019. Like Council, Gunton’s actions caused significant harm to users of the platform and caused volatility in the cryptocurrency market. This highlights the need for stronger cybersecurity in the financial sector, especially when it comes to cryptocurrencies, which rely on trust in digital systems.
