An Alabama man has been sentenced to 14 months in federal prison after hacking into the official X (formerly Twitter) account of the U.S. Securities and Exchange Commission (SEC) and publishing a false announcement about the approval of Bitcoin exchange-traded funds (ETFs). The misleading post briefly shook financial markets and raised serious concerns about cybersecurity in government agencies.
How the Hack Happened
According to court documents, Joseph James O’Connor, 27, managed to gain unauthorized access to the SEC’s verified social media account in January 2024. Once inside, he posted a message falsely claiming that the SEC had approved Bitcoin ETFs for public trading—a decision that the crypto world had long awaited. The message quickly went viral, causing a surge in Bitcoin prices before officials confirmed it was fake.
Market Reacts to Misinformation
Within minutes of the post, Bitcoin prices jumped, as traders and investors rushed to react to what they believed was a major regulatory breakthrough. However, the optimism was short-lived. The SEC quickly deleted the post and issued a statement confirming its account had been compromised and that no such ETF approval had occurred. The price of Bitcoin then rapidly dropped, highlighting the dangers of false financial news.
Background of the Offender
This wasn’t O’Connor’s first offense. He had previously been linked to other cyber-related crimes, including SIM swapping and hacking celebrity social media accounts. Authorities stated that he used sophisticated methods to breach the SEC’s systems and intended to manipulate markets for personal gain or chaos.
Court Sentencing and Penalty
U.S. District Judge Katherine Polk Failla handed down the sentence, citing the serious implications of the hack. She emphasized that tampering with public trust in financial institutions—especially one as critical as the SEC—warrants strong punishment. O’Connor was sentenced to 14 months in prison, along with restitution payments and a period of supervised release after serving his time.
Cybersecurity Concerns at Federal Agencies
Following the incident, the SEC announced plans to enhance its cybersecurity protocols and conduct a full review of its digital security infrastructure. Experts warn that such breaches could have more severe consequences in the future, especially as financial markets become more dependent on real-time digital communication.
Conclusion
The sentencing of Joseph O’Connor underscores the urgent need for stronger cybersecurity within institutions that influence global markets. It also serves as a warning that even a single fake post can have far-reaching effects on financial stability, investor confidence, and the credibility of regulatory bodie