An Alabama man has been arrested for hacking the social media account of the U.S. Securities and Exchange Commission (SEC), triggering a brief surge in Bitcoin’s price. The suspect allegedly took control of the SEC’s official social media handle, using it to post false information that fueled market speculation and caused Bitcoin’s value to spike temporarily.
Authorities revealed that the hacker exploited the platform to post misleading announcements, which traders mistook for official SEC guidance related to cryptocurrency regulations. The misinformation spread rapidly, prompting a surge in Bitcoin purchases before the SEC could regain control and issue a correction.
The FBI and cybersecurity teams tracked the hack to the suspect in Alabama, who now faces multiple charges, including fraud, unauthorized computer access, and market manipulation. Investigators are also examining whether the suspect profited from the Bitcoin rally or coordinated with other individuals to manipulate the market.
This incident underscores the vulnerabilities in financial markets, where misinformation, even briefly, can result in significant price swings. It also highlights the importance of securing social media accounts, particularly those managed by regulatory bodies, given the potential consequences for investors and markets.
Bitcoin’s price has since stabilized, but the event has raised concerns about how digital platforms and cryptocurrencies can be exploited, reinforcing calls for stronger cybersecurity measures and regulatory oversight.