FBI Arrests Hoax Spreading On Bitcoin ETF Approval

The FBI managed to catch the crypto hoax spreader on social media. (Photo; Doc. CoinCentral)

JAKARTA - The Federal Bureau of Investigation (FBI) managed to arrest Eric Council Jr., a man from Alabama, who is suspected of being the mastermind behind the spread of false information regarding the approval of the Exchange-Trad Fund (ETF) Bitcoin through a social media account belonging to the Securities and Exchange Commission (SEC). The scam that occurred last January had triggered a significant increase in the price of Bitcoin, although the ETF product has not actually been approved by the SEC.

According to an official statement, Eric Council Jr. was charged with conspiracy to steal the identity and fraud of device access. The indictment states that Eric Council Jr. illegally accessed SEC's X account using the stolen identity of someone who had access to the account, then took over his cell phone number, "said Nicole Argentieri, Principal of the Deputy Assistant Attorney General.

The Council and some of its colleagues are accused of using the illegal access to disseminate false information stating that the SEC has approved an ETF Bitcoin spot product. The post sparked a jump in the price of Bitcoin to US$1,000 (around Rp. 15.5 million), before finally falling back by 2,000 US dollars (around Rp. 31 million) after it was revealed that the information was not true.

This case occurred just days before the SEC officially approved Bitcoin spot ETF products. The incident caused turmoil in the crypto market, while highlighting the vulnerability of the digital financial ecosystem to information manipulation.

Furthermore, the FBI revealed that after successfully doing a fraudulent SIM swap method used to take over the victim's phone number "Council bought a new cellphone used to access SEC's X account. Council accepts payments in Bitcoin for its success in making SIM swaps. After that, he headed to Birmingham, Alabama, to return the iPhone used in the scam and exchange it for cash," the FBI said in a statement.

The Council is scheduled to be brought to justice in Alabama on Thursday. The SEC expressed its appreciation to the authorities for the quick move to uncover the perpetrators behind this hack. "We are grateful for the legal apparatus' vigilance in cracking down on cybercriminals who undermine the integrity of the financial market," said a SEC spokesman.