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.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post 14-Month Prison Sentence for Bitcoin ETF Tweet! appeared first on Coin Engineer.

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In a case filed on January 24 in the Washington DC District Court, US federal prosecutors charged Robert Powell, Carter Rohn, and Emily Hernandez with carrying out SIM-swap attacks and stealing the identities of 50 victims between March 2021 and April 2023.

Details of an attack on “Victim Company-1” are included in the filing, where Hernandez is alleged to have posed as an employee of the company on November 11 and 12, 2022, and Powell then gained access to AT&T accounts, accessed company accounts, and “transferred” over $400 million worth of cryptocurrency out of the crypto exchange’s wallets.

Blockchain security firm Elliptic said in a blog post on Thursday that “it seems likely that FTX is the ‘Victim Company-1’ referred to in the indictment,” since FTX’s crypto wallets had a large number of unauthorized transactions totaling around $400 million in the hours after the lawsuit was filed.

Bloomberg had reported (FTX)

A report by Bloomberg on Thursday cited two people familiar with the case who confirmed that the company named in the indictment is FTX.

Some of the funds were sent to the Kraken exchange shortly after the hack. Kraken’s chief security officer Nick Percoco at the time shared a post on Twitter stating that they were aware of the user’s identity.

Over the months, the exploiter wallets moved the funds through different bridges and blockchains in an attempt to launder the stolen crypto.

SIM swapping allows attackers to intercept multi-factor authentication codes used for login, and a number of high-profile crypto figures and projects have been successfully targeted in a series of attacks in December.

The agency, SEC, confirmed that an X account was also targeted in a SIM-swap attack. The attack happened after the exploiters made a fake post that the account had detected Bitcoin.

FTX CEO and restructuring chief John J. Ray III, upon taking over the post-bankruptcy exchange, claimed that the exchange’s security was “a complete mess” with a lack of proper systems, which likely made it a prime target for the SIM-swapping trio.

Powell, Rohn, and Hernandez have been charged with conspiracy to commit electronic fraud and aggravated identity theft.

The post Three Charged With SIM-Swapping $400 Million From FTX appeared first on Coin Engineer.