A 26-year-old man from Huntsville, Alabama, is sentenced to 14 months in prison and three years of supervised release for illegally taking control of the official X account of the Securities and Exchange Commission (SEC).
In January 2024, the suspect succeeded in compromising the SEC’s X account. He used the account to spread the word that the supervisor agency had approved Bitcoin Exchange Traded Funds. This caused the price of bitcoins to increase by more than $1,000.
When the SEC got notice of the bogus message, the stock market supervisor intervened and said that the announcement was false and the result of a security breach. Due to this, the value of bitcoin decreased by more than $2,000 per bitcoin.
The suspect used a method called SIM swapping to bypass multi-factor authentication (MFA). To pull this off, the suspect used an identification card printer to create a fraudulent identification card. This card contained the victim’s personally identifiable information, which he got from his accomplices.
The duplicated card was then used to impersonate the victim to gain access to his cellular phone number for accessing the SEC’s X account and posting the fabricated message. The 26-year-old man from Alabama received payment in bitcoin from his accomplices for his role in the crypto scheme.
In February 2025, the suspect pleaded guilty to taking control of the SEC’s X account. Last Friday, the court decided to impose a prison sentence of 14 months for the crime he committed. In addition, he will receive three years of supervised release once his prison sentence is over.
“Schemes of this nature threaten the health and integrity of our market system. SIM swap schemes threaten the financial security of average citizens, financial institutions, and government agencies. Don’t fool yourself into thinking you can’t be caught. You will be caught, prosecuted, and will pay the price for the damage your actions create,” US Attorney for the District of Columbia Jeanine Pirro said in a statement.
“Today’s sentencing exemplifies SEC OIG’s commitment to holding bad actors accountable and maintaining the integrity of SEC programs and operations through thorough investigative oversight.
“We are committed to working with the SEC and other law enforcement partners to help the SEC effectively and efficiently deliver on its critical mission,” SEC Office of Inspector General.
Special Agent in Charge Amanda James added to her colleague’s remarks.
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