Man Jailed for Fake SEC Bitcoin Post That Shook Crypto Markets
A hacker who faked a Bitcoin ETF approval on SEC’s X account has been jailed for 14 months. The post sparked chaos in the market.
In a bizarre and alarming case, the U.S. Department of Justice has sentenced an Alabama man to 14 months in prison for hacking the SEC’s official X (formerly Twitter) account and posting a false statement that caused chaos in the crypto markets.
The fake post, made in early 2024, falsely claimed that the SEC had approved Bitcoin ETFs, a move that instantly triggered a surge in BTC prices, only for them to crash minutes later when the hoax was exposed.
The Impact:
Within moments, Bitcoin spiked over 10%, leading to millions in liquidations and speculation. While the real approval did come later, the fake announcement created confusion, market manipulation, and raised questions about how easily investor sentiment can be swayed by unauthorized social media posts.
Who Was Behind It?
According to court filings, the hacker exploited weaknesses in two-factor authentication to access the SEC’s X account. Prosecutors say he intended to profit from the short-lived price movements.
Why It Matters:
This case highlights the fragility of digital trust in financial markets and the growing threat of social media-driven market manipulation. The sentencing sends a strong message: fake news in finance has real consequences.
What does this say about the security of our financial systems in the digital age? Let us know your thoughts below and stay updated with Trafy.io for the most important crypto and investment stories.
