Alabama man arrested for hacking SEC’s X account, posting fake Bitcoin ETF approval prior to official announcement
Eric Council Jr. charged with conspiracy after SIM swap attack caused Bitcoin to surge $1,000 with fraudulent post.
SEC
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Because Bitcoin
October 17, 2024
SEC
News
A recent press release states that Eric Council Jr., 25, from Athens, Alabama, was arrested in connection with a January 2024 incident where hackers took over the U.S. Securities and Exchange Commission’s (SEC) X account (formerly Twitter). The hackers posted a fake message from the SEC Chair, leading to a $1,000 spike in Bitcoin’s (BTC) value. Council is set to appear today in the Northern District of Alabama.
The indictment, unsealed today, charges Council with conspiracy to commit aggravated identity theft and access device fraud. According to prosecutors, Council and his co-conspirators gained unauthorized access to the SEC’s X account through a SIM swap attack. They posted a false message claiming the SEC had approved Bitcoin ETFs for listing on all registered national exchanges. This caused Bitcoin’s price to rise by more than $1,000 before dropping by over $2,000 when the SEC clarified the announcement was fraudulent.
The U.S. Attorney, the Justice Department, the FBI, and the SEC Inspector General announced the charges, with the authorities emphasizing the severity of SIM swapping schemes, which can cause significant financial and personal harm. SIM swapping occurs when criminals fraudulently convince a service provider to transfer control of a victim’s phone number to a new SIM card, allowing them to bypass security measures and access sensitive accounts.
The indictment alleges Council, under online aliases like “Ronin,” “Easymunny,” and “AGiantSchnauzer,” used stolen personal information and a fake ID to obtain a SIM card linked to a victim’s phone line. He then purchased a new iPhone to access the SEC’s X account and shared the login details with his co-conspirators, who posted the false tweet. In return, Council received Bitcoin payments. After the attack, he reportedly searched for terms related to the hack and potential investigations by the FBI.
The case is being investigated by multiple agencies, including the FBI and SEC, and is being prosecuted by attorneys from the U.S. Attorney’s Office and the Department of Justice’s Criminal Division.
