Bitcoin Spot ETF Approved Despite SEC Hack

The U.S. government has approved a Bitcoin spot ETF for an account previously involved in a security breach at the Securities and Exchange Commission (SEC). The hacker behind the incident has agreed to a plea deal.

The approval of the Bitcoin spot ETF comes amidst a backdrop of increased scrutiny on cryptocurrency regulation. The SEC has been at the forefront of this effort, with the recent hack highlighting the need for enhanced security measures.

The hacker, Eric Council Jr., is a member of an organization that temporarily took control of the SEC's account through a SIM card swap attack in January 2024. This breach allowed the hacker to post a fake message containing an image of then-SEC Chairman Gary Gensler announcing the approval of a Bitcoin spot ETF.

In a filing submitted to the District of Columbia U.S. District Court on February 9, 2025, federal prosecutors proposed a forfeiture order requesting Council to pay $50,000, money he "personally gained" from posting the message. The alleged hacker will also plead guilty to a conspiracy offense involving aggravated identity theft and access device fraud.

The approval of the Bitcoin spot ETF is a significant development in the cryptocurrency market. It signals a growing acceptance of digital assets by mainstream financial institutions and could pave the way for further investment in the sector.

However, the security breach at the SEC serves as a reminder of the challenges facing the cryptocurrency industry. As digital assets become more mainstream, the need for robust security measures and regulatory oversight becomes increasingly important.