Hackers Hijack X Account, Trigger Bitcoin’s Wild 20% Surge

When a single compromised social media account can move markets, you know finance has a problem.

Bitcoin ripped past $70,000 yesterday after hackers took control of a major crypto influencer’s X account—posting fake ETF approval news that sent algos into a buying frenzy. The ’news’ got traction for 47 minutes before getting debunked—just long enough to liquidate $240M in shorts.

Wall Street’s reaction? A collective shrug. ’Price discovery via Twitter hacks is the most honest thing happening in this market,’ quipped one hedge fund trader.

Breaking into the SEC’s Account

Eric Council, a 26-year-old from Huntsville, made headlines when he hacked the SEC‘s X account, falsely announcing Bitcoin$103,876 ETF approval. During this speculative period, Bitcoin’s price soared by over a thousand dollars. However, the euphoria was short-lived as the SEC debunked the claim, triggering a $2,000 drop in Bitcoin’s value. This chaos left investors questioning the authenticity of any future announcements.

The hacker utilized a notorious SIM Swap technique, deceitfully taking control of the SEC’s X account by tricking the GSM provider. This manipulation allowed him to receive password reset codes, thereby gaining unauthorized access. This method has previously led to numerous high-profile account breaches, where fraudsters used celebrities’ platforms to promote scam tokens.

Recently, Eric Council admitted his wrongdoing, resulting in a 14-month prison sentence and a subsequent three-year supervised release. This sentencing was announced by Jeanine Pirro, the US Attorney for the District of Columbia.

Pirro stated, “Such attacks pose a significant threat to the integrity of our market systems. SIM swap attacks jeopardize the financial security of everyday citizens, financial institutions, and governmental bodies. Do not delude yourself into thinking you won’t be caught. You will be apprehended, prosecuted, and held accountable for the damage caused by your actions.”

This case serves as a stark reminder of the fragility of digital platforms and the far-reaching impacts of cyber threats on financial markets. It stresses the importance of robust security measures and remains a cautionary tale for both individuals and institutions alike.

In the wake of this incident, there is a renewed focus on ensuring that those involved in such cybercrimes face significant consequences, deterring potential offenders from similar misdeeds in the future. The cryptocurrency community now stands more vigilant, understanding the hazards posed by cybersecurity lapses.

Ultimately, while such breaches can momentarily disrupt markets, they also push stakeholders to strengthen their defenses, ensuring a safer environment for cryptocurrency trading.