The US government is preparing a plea deal for the hacker who targeted the Securities and Exchange Commission (SEC) Twitter/X account. Bloomberg reports this. The deal was made just a few days after authorities arrested the 25-year-old suspect from Alabama.
In January, the suspect hacked into the SEC’s Twitter/X account and posted fake news, sharing that the agency had approved Bitcoin ETFs, causing a spike in crypto prices. The agency immediately removed the post and explained that it was a hoax. Bloomberg adds that the planned plea deal was shared with U.S. District Judge Amy Berman Jackson last October 25, but the government is unsure if the plea will be accepted.
Suspect arrested by FBI last week
The Federal Bureau of Investigations (FBI) led the manhunt for Eric Council Jr., the suspect SEC X account hacking from Alabama. According to the statement from the US Attorney’s Office, the Council was arrested for the “SIM swapping” hack. The office further adds that hacking and sharing of fake news has affected the price of Bitcoin and other cryptocurrencies.
The SEC commended the work of the FBI and thanked authorities for their assistance in pursuing the suspect in the name of accountability. Prosecutors allege the suspect is a co-conspirator in the hacking of the SEC’s social media account. It was reported that the suspect was instructed to exchange the victim’s phone for a new device and use it to post and share fake news.
SEC X account hacking has pushed the price of Bitcoin up
According to the government, posting fake news has direct consequences for this Bitcoin’s price and market activity. Immediately after posting, Bitcoin’s price rose by $1,000. The hacking took place a few days before the SEC officially announced that it would allow trading in Bitcoin ETFs. It was a crucial moment for the sector as all stakeholders waited for the agency’s official policy.
When the agency regained access to his account, it immediately rejected the fake post, and Bitcoin and crypto prices responded immediately. Market sentiment was wild following the SEC’s clarification, with the BTC price dropping by at least $2,000 within minutes.
Will the Council get a plea deal?
A possible plea deal is now on the table after U.S. Attorney Kevin Rosenberg confirmed the offer with District Judge Jackson on October 25. Prosecutors are still unsure whether the Council will take up the offer.
According to court documents, the suspect faces several charges, including conspiracy to commit aggravated identity theft and device fraud. It was also reported that the suspect received Bitcoin for completing the hack.
Featured image from Reuters, chart from TradingView