**FBI Arrests Hacker for Manipulating Bitcoin Prices Through SEC Account Hack**

The FBI has arrested 25-year-old Eric Council Jr. for hacking the Securities and Exchange Commission’s (SEC) X account in January 2024. Council Jr. was involved in a scheme that posted a fake message claiming the SEC had approved Bitcoin exchange-traded funds (ETFs), causing Bitcoin’s price to surge by over $1,000. The SEC quickly clarified that no such approval had occurred, leading to a dramatic price drop.

**SIM Swap Attack on SEC**

The hack was executed through a SIM swap, allowing Council Jr. and his team to bypass two-factor authentication and gain control of the SEC’s account. They posted the fake Bitcoin ETF approval, causing temporary market chaos.

**Market Reaction to Fake Tweet**

The fake tweet led to a $1,000 spike in Bitcoin’s price, which plummeted by $2,000 after the SEC corrected the misinformation. This incident underscores the crypto market's sensitivity to news and tweets.

**SEC’s Actual Bitcoin ETF Approval**

Ironically, the SEC approved several Bitcoin ETFs a day after the fake post. However, the damage from the fraudulent tweet had already impacted investor decisions.

**FBI Investigation**

The FBI discovered that Council Jr. received Bitcoin payments for his role in the hack. He faces charges of identity theft and fraud, highlighting the ongoing battle between regulators and cybercriminals in the crypto space. The FBI continues to pursue other conspirators involved.