US Offers Deal to SEC Account Hacker
Date: 2024-10-28 Author: Gabriel Deangelo Categories: IN WORLD
According to investigators, Council posted a false tweet about a supposedly approved Bitcoin ETF, causing significant market volatility. At the latest hearing, the 25-year-old defendant pleaded not guilty to charges including identity theft and fraudulent use of funds.
FBI Searching for Others in SEC Hack
Bloomberg reports that prosecutors believe that cooperation with Council may lead to other suspects who may have taken part in the cyberattack. The scheme, according to investigators, was organized using the stolen credentials of an SEC employee, which allowed the attackers to gain access to the agency's account.
Assistant U.S. Attorney Kevin Rosenberg has informed U.S. District Judge Amy Berman Jackson of the possible deal, but it is unclear whether Council will accept the offer.
According to investigators, Council may have used a fake ID to gain access to an SEC employee’s mobile device. This allowed him and his accomplices to exploit security vulnerabilities on the social media platform to access the account.
While Council denies any wrongdoing, authorities say they have evidence linking him to the crime. The indictment states that he actively sought information about the hacks and was checking to see if he was a target of the investigation.
Hack Causes $230 Million in Losses
A false tweet on behalf of the SEC, according to authorities, resulted in the liquidation of $230 million in assets as the market reacted to the misinformation before the Bitcoin ETF was officially approved.
Plea bargaining is common practice in cybercrime cases. The FBI often offers hackers reduced sentences in exchange for cooperation. A similar scheme was used in the case of Ilya Lichtenstein, who was offered a reduced sentence of five years by federal prosecutors in exchange for his help in investigating the Bitfinex case.
