Yeliz Akmaca 
Fake Bitcoin ETF Approval Doubled the Price
Eric Council Jr. created fake identity documents and seized the SIM card linked to the SEC’s account. The company activated the new SIM card for the line associated with the SEC’s X account. Council received password reset messages through this line. He then accessed the X account and shared a fake Bitcoin ETF approval announcement.
This post quickly pushed Bitcoin’s price up within hours. Investors believed the announcement and acted accordingly. However, SEC Chair Gary Gensler promptly stated that the account had been hacked. Gensler warned investors about misinformation. The next day, on January 10, 2024, the SEC officially announced the Bitcoin ETF approval. Bitcoin’s price continued to rise following this news, eventually more than doubling to $103,876.
14 Months in Prison and Strict Conditions for Release
In June 2024, the FBI raided Council’s home. Authorities found searches like “Is the FBI watching me?” on his computer. This indicated the attack was deliberate and planned. Officials arrested Council in October. The court sentenced him to 14 months in prison and a $50,000 fine. Additionally, the judge banned him from accessing the dark web. He will remain on supervised release for three years and cannot engage in any identity fraud attempts.
U.S. Attorney Jeanine Pirro gave a clear message regarding the case:
“These schemes damage market trust. SIM swap fraud targets ordinary citizens and government agencies alike. No one should think they won’t get caught. Law enforcement will find you, bring you to justice, and make you pay.”
Digital Security is Essential for Everyone
This incident impacted not only major institutions like the SEC but also individual investors. Verifying the accuracy of news in the crypto market is crucial. Not every post on social media should be trusted. Investors should only consider official statements.
Moreover, it’s vital not to underestimate security vulnerabilities in the investment world. Ultimately, this case reminds us how critical digital identity security is. Social media account protection has become a key part of financial safety. In particular, government institutions must implement tighter safeguards.
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