The man who kidnapped the X SEC account to pump Bitcoin faces up to five years in prison

A man from Alabama kidnapped the X account of the American Securities and Stock Exchanges (SEC) for the Bitcoin pump Admit To steal identity and access to the fraud. Use Eric Council JR. In addition to a conspirator, their unauthorized arrival to the SEC X account to publish a false statement claiming that the agency agreed to Bitcoin exchange money. The price of Bitcoin rose rapidly before back down after Gary Ginsler, the then president of SEC, used his personal account to mention that the post was wrong.

The encrypted currency industry has long been linked to the ability to launch the Bitcoin investment funds, which mainly allow ordinary traders to invest in encryption without the need to keep the currency themselves or buy it through a custom exchange. It is more secure because ETF investors do not have to keep the currency themselves or risk losing their money in all very common breakthroughs. second Approved by the investment funds circulated in Bitcoin After a day of penetration, curiously.

According to the Ministry of Justice, the council arrived at the SEC account using an attack called SIM SWKING, where the perpetrator of the crime uses social engineering to deceive the representatives of the phone customer service to transfer the individual phone number to a new device. Basically, they call the support line and use parts of personal information about the victim they collected online to persuade the actor that they are the person targeting them. Once the perpetrators take the number and they can start receiving text messages, they can reset account passwords on services such as X. It is not really a “penetration” in the traditional sense that they do not find flaws in software but rather the exploitation of man instead trusts.

SIM switch has become a big problem in recent years, which caused badly a specialty 2020 Twitter broke down This was witnessed by infiltrators, holding major personalities such as President Obama. Likewise, in this case, the perpetrators were running an encrypted currency fraud. SIM are a preferred method for the kidnapped of the cryptocurrency portfolios, which are not protected by FDIC insurance. Once the encrypted currency boxes are stolen, they are incredibly difficult (but not impossible) to return, making them perfect for fraud. A lot of international fraud is made using encrypted currencies such as Bitcoin and Tether because they do not touch the traditional banking system, which contains many provisions in force to monitor money laundering and other suspicious activity. President Trump’s support for encryption and evacuation of the Consumer Consumer Protection Office will improve.

Unfortunately for individuals like a council, all Bitcoin transactions are recorded on Blockchain for anyone to see, leaving a corridor of bread crumbs for investigators. If he takes out a lot of encryption, it will be difficult to keep it hidden forever.

It is claimed that the council did not publish the message itself to the SEC’s X account, but it conducted a SIM swap and left the rest of the work to its participants who compensated the council in the form of Bitcoin, of course. The price of the cryptocurrency increased by $ 1,000 after the fake announcement, according to the Ministry of Justice, and decreased by 2000 dollars after the Securities and Stock Exchange issued a correction. This could have a great escape depending on the amount of bitcoin kept by perpetrators at that time. The council faces up to five years in prison when he is sentenced.

In its press statement, the Ministry of Justice does not specify whether or not the participating conspirators have identified, but the investigation is still ongoing.