WASHINGTON

The FBI made an arrest in the state of Alabama in connection with a hack of the Securities and Exchange Commission (SEC)’s social media X account in January, the Justice Department announced Thursday.

"According to court documents, on or about Jan. 9, Eric Council Jr., 25, of Athens, allegedly conspired with others to take unauthorized control of the SEC’s X account and, in the name of SEC Chair Gary Gensler, prematurely announced the approval of bitcoin Exchange Traded Funds," it said in a statement.

Following the announcement by Council, the price of bitcoin increased by more than $1,000 and after the unauthorized post, the SEC regained control of its account and said the announcement was unauthorized, the result of a security breach.

After the corrective disclosure, the value of Bitcoin, the world's largest cryptocurrency, decreased by more than $2,000.

"The conspirators gained control of the SEC’s X account through an unauthorized Subscriber Identity Module (SIM) swap, allegedly carried out by Council," said the agency.

It said a federal grand jury in Washington DC returned an indictment Oct. 10 charging Council with one count of conspiracy to commit aggravated identity theft and access device fraud.

Council faces a maximum penalty of five years in prison, if convicted.