Hacker compromises SEC and disrupts Bitcoin: FBI tracks him with help from Google

In January 2024, a hacker successfully hacked into the Securities and kraken/">Exchange Commission’s (SEC) X account and spread false information that disrupted the Bitcoin market. This incident not only highlighted the institution’s vulnerabilities but also drew the attention of the FBI, which used modern tools, including Google searches, to track down the perpetrator of this audacious attack. This article revisits the events that led to this digital catastrophe.

The SEC X Account Hack Fiasco

On January 9, 2024, as the world awaited news regarding the approval of a Bitcoin ETF, a misleading message appeared on the SEC’s X account. This fake post announced that approval had finally been granted, sparking a buying frenzy among investors. In less time than it takes to say “Bitcoin,” the price soared by $1,000, sparking excitement in a slow market.

The SEC, supposedly a guardian of the financial markets, quickly denied the news, but it was too late: the fake message had already enabled market manipulation. In less than 30 minutes, the repercussions were devastating, with Bitcoin dropping by a record $2,000 after the clarification, and numerous liquidations were observed.

A Daring Hacker: The Hacker’s Modus Operandi

The hacker, identified as Eric Council Jr., used a SIM swap technique to access the SEC’s X account. This method involves convincing a mobile phone provider to transfer a phone number to a new SIM card, allowing the hacker to receive all notifications and security codes. Since the SEC does not have multi-factor authentication, active on his account offered an open door to the hacker. This decision, described as unfortunate, was justified by an unresolved technical problem. Gary Gensler, the chairman of the SEC, was ridiculed after posting about cybersecurity while not following his own advice. This situation sparked ridicule on social media and highlighted security flaws in an institution supposed to protect the integrity of the financial market. Google’s role in tracking down the hacker What is particularly striking about this case is Council’s behavior after his success. Rather than hiding, he started searching for information about himself on Google. Investigators found searches such as “How do I know if the FBI is investigating me?” » or “SECGOV Hack”. This clumsy curiosity ultimately made the task of the authorities easier.

Using research data, the FBI was able to quickly trace Council’s digital activities and establish a direct link to the hack. This is how, thanks to his recklessness, the young hacker found himself trapped in his own net. The trajectory of the hunt revealed the modern tools available to the authorities in the fight against cybercrime.

The consequences of the attack on the market and on the hacker

The hack not only caused temporary unrest, it also embarrassed the SEC and attracted the attention of federal authorities. As a result, Eric Council Jr. was arrested on October 17, 2024, with the indictment revealing that he not only usurped the SEC account, but also received payment in

Bitcoin

for his shot.

Accusations are multiplying, ranging from market manipulation to access fraud . Council could face up to five years in prison, and the scope of his actions raises questions about security and regulation within financial institutions. The ridiculous irony is all the more evident when we note that the SEC, which preaches virtue in matters of security, has itself admitted to having neglected essential measures.

Conclusion on the security of financial institutions This incident is a real blow to the SEC, whose reputation has been shaken. With future initiatives planned to strengthen account security, it remains to be seen how this case will influence public perception of the institution. Furthermore, Council’s story is a reminder that even the most astute hackers are not immune to a stray moment of curiosity that can betray them. All this, under the watchful eye of the FBI, armed with modern investigative and digital research resources.https://www.youtube.com/watch?v=4F72p49jBFc