The US government is preparing a settlement agreement for the hacker who targeted the Twitter/X account of the Securities and Exchange Commission (SEC), Bloomberg reports. The deal came days after authorities arrested a 25-year-old suspect from Alabama.
In January, a suspect hacked the SEC’s Twitter/X account and posted fake news, sharing that the agency had approved Bitcoin ETFs, causing the crypto’s prices to skyrocket. The organization then quickly took down the post and explained that it was a hoax. Bloomberg adds that a planned plea agreement was shared with US District Judge Amy Berman Jackson last October 25, but the government is not sure if the plea will be accepted.
The Suspect Was Arrested By The FBI Last Week
The Federal Bureau of Investigations (FBI) led a manhunt for Eric Council Jr., a suspect in the SEC X account hack from Alabama. According to a statement from the US Attorney’s office, Council was arrested in connection with the SIM-swapping hack. The office goes on to add that hacking and the sharing of fake news have affected the price of Bitcoin and other cryptocurrencies.
The SEC praised the FBI’s work and thanked authorities for helping pursue the suspect in the name of accountability. Prosecutors allege that the suspect conspired to hack into the SEC’s social media account. It is reported that the suspect was ordered to replace the victim’s phone with a new device and use it to write and read fake news.
Hacking of SEC X Account Pushed Bitcoin Price
According to the government, posting fake news has directly affected the price of Bitcoin and activity in the market. Immediately after posting, the price of Bitcoin increased by $1,000. The hack happened just days before the SEC officially announced that it would allow trading of Bitcoin ETFs. It was a critical time in this industry since all stakeholders were waiting for the legal mission of this organization.
When the agency regained access to its account, it quickly deleted the fake posts, and Bitcoin and crypto prices reacted instantly. Market sentiment was wild after the SEC clarification, with the price of BTC dropping by at least $2,000 in minutes.
Will the Council Get a Plea Agreement?
A possible deal is now on the table after U.S. Attorney Kevin Rosenberg confirmed the request with District Judge Jackson on October 25. Federal prosecutors are still unsure if the Council will take up the offer.
According to court documents, the suspect is facing many charges, including conspiracy to steal identity cards and fraud. It was also reported that the suspect received Bitcoin for completing the hack.
Featured image from Reuters, chart from TradingView