FBI apprehends man for allegedly hacking SEC account to post false information regarding Bitcoin in an event that has alarmed both technology and finance industries.
The event occurred when law enforcement realized that there were multiple announcements posted on the SEC’s website that stated important changes regarding Bitcoin’s legal status. These announcements resulted to rise in the price of Bitcoins abruptly thus causing havoc among the traders and users of the social media.
The individual whose name has not been released is said to have hacked into the SEC’s account by using various technical methods. The fraudster pretended to post an update that caused general nervousness among the crypto investors, who made a lot of unsound decisions based on the information posted by the hacker.
The people in federal agents followed the hacker to a private server where they found a string of servers and devices connecting to fake messages from the highest offices in government. According to the allegations, the hacker wanted to affect the Bitcoin price by bringing out fake news through a reliable source in the market.
The suspect was arrested while he was surrounded by computers and devices showing Bitcoin charts and encrypted messages. The FBI has now joined the probe and with the help of cyber-technicians is trying to unravel how the hacker infiltrated itself into the SEC and got to the restricted system.
This high-profile arrest also illustrates the increasing difficulties that financial and regulatory organizations experience while combating digital offenders. Growing adoption makes investors more concerned about these circumstances as they can be indicative of illegal manipulations of the markets.
Law enforcement agencies are already trying to regain the public’s confidence in dealing with the SEC’s networks, along with putting measures in place to protect against future cyberattacks. The man who caused this big breach could be charged severely for fraud, hacking permissible data, and sharing false information to manipulate the markets.
The case is still active and the decision made today has the potential to shape the further evolution of cybersecurity measures and regulation of cryptocurrencies.
