FBI Arrests Eric Council Jr. for Hacking SEC X Account, Triggering Bitcoin Price Surge with Fake ETF Announcemen
Highlights:
– Eric Council Jr. was arrested for hacking the SEC’s X account, leading to a $1,000 spike in Bitcoin’s price.
– The attack involved a SIM swap, resulting in a false tweet about Bitcoin ETF approval.
– Council’s online searches revealed concerns about FBI investigation prior to his arrest.
The FBI has arrested Eric Council Jr., 25, from Athens, Alabama, for his involvement in hacking the U.S. Securities and Exchange Commission (SEC) X account, formerly known as Twitter, in January 2024. Council’s actions led to the posting of a fake message from the SEC Chair’s account, briefly inflating Bitcoin’s value.
Details of the SEC X Account Hack:
According to the indictment, Council was part of a scheme to take over the SEC’s X account on January 9, 2024. The hack was executed through a SIM swap attack, a method where a fraudster redirects someone else’s phone number to their own device. Using this tactic, Council and his accomplices gained unauthorized access to the SEC’s account.
Once in control, they posted a deceptive message claiming that the SEC had approved Bitcoin ETFs for trading on national securities exchanges. This false announcement led to a sharp rise in Bitcoin’s price by over $1,000, which later plummeted by more than $2,000 after the SEC regained control and clarified the misinformation.
Charges of Conspiracy and Identity Theft:
The FBI revealed that Council used personal information from a victim to apply for a SIM card linked to the victim’s phone number, acquiring the necessary data from his co-conspirators. He then used a fake ID to complete the SIM swap at a mobile store in Huntsville, Alabama.
After gaining control of the phone number, Council bought a new iPhone, logged into the SEC’s X account, and shared access codes with others who posted the misleading tweet. Investigators found that Council received payment in Bitcoin for his role in the scheme.
Council faces charges of conspiracy, aggravated identity theft, and access device fraud. He is set to make his initial court appearance in the Northern District of Alabama. U.S. Attorney Matthew M. Graves highlighted the risks of SIM swapping, which can lead to severe financial losses and data breaches.
Investigation and Ongoing Cybercrime Concerns:
Authorities noted that Council’s online behavior raised suspicion, as he searched for terms like “SECGOV hack” and “how can I know for sure if the FBI is investigating me,” suggesting he was aware of potential law enforcement scrutiny. The FBI continues to investigate other individuals involved in the conspiracy.
This case is part of a broader concern about rising cybercrime and fraud in the cryptocurrency sector. It follows another high-profile case involving Ilya Lichtenstein, who pled guilty to a money-laundering conspiracy related to the $6 billion Bitfinex hack and faces up to five years in prison.
