The US government is preparing a plea deal for the hacker who targeted the SEC’s Twitter/X account. Bloomberg reported. The deal was struck just days after authorities arrested the 25-year-old suspect from Alabama.
In January, the suspect hacked the SEC’s Twitter/X account and spread fake news, stating that the agency had approved Bitcoin exchange-traded funds, causing cryptocurrency prices to soar. The agency immediately deleted the post and explained that it was a hoax. Bloomberg adds that the planned plea deal was shared with US District Court Judge Amy Berman Jackson last October 25, but the government is unsure whether the plea will be accepted or not.
The suspect was arrested by the FBI last week
The FBI led the manhunt for Eric Council Jr., the suspect in the crime SEC X account hacked From Alabama. According to a statement from the US Attorney’s Office, Counsell was arrested for SIM card hacking. The bureau also adds that hacking and the sharing of fake news have affected the price of Bitcoin and other cryptocurrencies.
The SEC praised the work of the FBI and thanked authorities for their assistance in pursuing the suspect in the name of accountability. Prosecutors allege the suspect had co-conspirators in the hack of the SEC’s social media account. It was reported that the suspect was instructed to replace the victim’s phone with a new device and use it to spread and share fake news.
SEC X account hack sent Bitcoin price soaring
According to the government, the spread of fake news has a direct impact Bitcoin price and market activity. Immediately after publication, the price of Bitcoin rose by $1,000. The hack occurred just days before the SEC officially announced that it would allow ETFs to trade in Bitcoin. It was a crucial moment for the industry as all stakeholders were waiting for the agency’s official policy.
When the agency regained access to its account, it immediately dismissed the fake post, and Bitcoin and cryptocurrency prices immediately reacted. Market sentiment was wild following the SEC clarification, with the price of Bitcoin falling by at least $2,000 in minutes.
Will the council get a plea deal?
A potential plea deal is now on the table after U.S. Attorney Kevin Rosenberg confirmed the offer with District Judge Jackson on October 25. State prosecutors are still unsure whether the council will accept 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 in exchange for completing the hack.
Featured image from Reuters, chart from TradingView