Eric Council Jr., the suspect behind the hack of the official X-account of the US Securities and Exchange Commission (SEC), is temporarily allowed to travel during the holidays. The alleged hacker caused a stir in the crypto market early this year by posting a fake message suggesting that Bitcoin exchange-traded funds (ETFs) had been approved.
Judge Amy Berman Jackson authorized the trip to North Carolina between December 23 and 29, under strict conditions. Council must “provide Pre-Trial Services with a complete itinerary and accommodation address at least two working days prior to departure.” This is stated in court documents dated December 13.
The hack that shocked the crypto market
On January 9, Council allegedly gained access to the SEC’s X account through a SIM swap attack. He posted a fake message saying that the SEC had approved Bitcoin ETFs. This announcement caused the Bitcoin price to briefly rise by over $1,000. The fake message even included a fabricated quote from SEC Chairman Gary Gensler. It wasn’t until 24 hours later that the SEC announced its actual decision on the investment products, which somewhat stabilized the market.
The FBI arrested Council on October 17 in Alabama. He has pleaded not guilty to charges of conspiracy, identity theft and access device fraud. A trial date has not yet been set, but the court has ordered the parties to enter a plea agreement by January 17.
Security issues at the SEC
After the hack, X’s security team reported that the SEC account did not have two-factor authentication enabled, which may have contributed to the vulnerability. The incident highlights the need for stricter security measures, especially at influential institutions. In May, the SEC reported no problems with approving Ethereum spot products.
Impact on the crypto world
The case against Council casts a shadow over the crypto sector, which is increasingly facing regulatory pressure and security issues. Experts point out that hacks of government institutions not only cause market fluctuations, but also undermine confidence in both the market and the authorities.
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Source: https://newsbit.nl/vermeende-hacker-van-sec-x-account-mag-tijdens-feestdagen-reizen/
