In January, the FBI allegedly hacked the US Securities and Change Fee's (SEC) X account and used it to publish falsehoods concerning the approval of a bodily Bitcoin (BTC) exchange-traded fund (ETF) within the US. The person was arrested.

The person was recognized as Eric Council Jr., 25, of Athens, Alabama, based on a press release from the U.S. Legal professional's Workplace for the District of Columbia. Because of this pretend announcement, the value of BTC soared by $1,000, earlier than plummeting by $2,000 after the SEC took management of the account and introduced a repair.

The council is charged with conspiracy to commit aggravated id theft and entry machine fraud. The FBI revealed that the assault was carried out by a SIM swap, with the council and co-conspirators manipulating the victims' telephone numbers to entry the SEC's X account.

The assault was paid in Bitcoin

In accordance with the indictment, the council used the stolen private info to forge false identification paperwork and conduct SIM swaps, thereby giving them entry to the SEC's social media accounts.

SIM swapping is a social engineering assault vector that consists of a malicious attacker utilizing a sufferer's private info to trick a cell service supplier into porting a telephone quantity to a brand new SIM chip.

Thus, hackers achieve entry to any platform the place the sufferer makes use of a cell quantity as a login credential. Metropolis Council allegedly introduced false identification at an Alabama mobile phone supplier's retailer.

After posting the fraudulent message, the council acquired cost for its position in Bitcoin and promptly returned the tools used within the assault.

U.S. Legal professional Matthew M. Graves emphasised the significance of holding accountable those that manipulate markets by cybercrime. The Division of Justice, FBI, and SEC Workplace of Inspector Common led the investigation.

Billionaire cryptocurrency losses

SIM swap assaults are additionally a typical assault vector that hackers apply to steal cryptocurrencies. In 2017, investor Michael Terpin misplaced $24 million when a malicious actor used this method to compromise considered one of his wallets.

Moreover, a gaggle of three people allegedly used SIM swap assaults to entry wallets and steal over $400 million in cryptocurrencies between March 2021 and April 2023.

Ars Technica reported that the group used the identical strategies allegedly utilized by the council to print pretend ID playing cards and use them to pose as victims at cell phone service supplier shops. .