FBI arrested Eric Council Jr. for hacking the US SEC’s X account and creating a Bitcoin price surge with a fake ETF approval tweet.
The Federal Bureau of Investigation (FBI) has arrested Eric Council Jr., 25, from Athens, Alabama, in connection with the unauthorized access of the United States Securities and Exchange Commission’s (SEC) X account, previously known as Twitter, in January 2024.
The arrest follows accusations that Council took part in a hacking spree, during which a fraudulent post from the SEC Chair’s account temporarily boosted Bitcoin’s value.
US SEC Twitter Hacker Arrested for Fake Bitcoin ETF Announcement
According to the indictment, Eric Council was involved in the conspiracy to take control of the SEC’s X account on January 9, 2024.
The attack was executed using a SIM swap technique, which involves rerouting a phone number from its rightful owner to a device controlled by the hacker. By doing this, Council and his accomplices gained access to the SEC’s account.
After taking control, they posted a false message from the SEC Chairman’s account, claiming that Bitcoin ETFs had been approved for listing on all national securities exchanges.
This led to a more than $1,000 increase in Bitcoin’s price. However, after the SEC regained control of the account and issued a correction, Bitcoin’s price fell by over $2,000.
Charges of Conspiracy and Identity Theft
The FBI alleges that Council used personal identifying information (PII) from a victim to request a SIM card linked to the victim’s phone number. Council reportedly obtained the PII and a fake ID template from his co-conspirators.
Using a fake identification, Council allegedly conducted the SIM swap at a mobile carrier in Huntsville, Alabama. Once in control of the victim’s phone number, he purchased a new iPhone and used it to log into the SEC’s X account.
He then shared the account access codes with others, who posted the fraudulent Bitcoin ETF announcement. Council is said to have received payment in Bitcoin for his role in the scheme.
Investigation and Cybercrime Charges
Council faces charges of conspiracy to commit aggravated identity theft and access device fraud. He is set to make his initial plea in the Northern District of Alabama.
U.S. Attorney Matthew M. Graves emphasized the seriousness of SIM swapping, calling it a dangerous crime that can lead to major financial losses and the exposure of sensitive data.
Council’s online searches, which included queries like “SECGOV hack” and “how can I know for sure if the FBI is investigating me,” suggest he was aware of potential law enforcement surveillance. Authorities are still investigating other individuals involved in the conspiracy.
This case emerges amid growing concerns about cybercrime and cryptocurrency fraud.
In a separate high-profile case, Ilya Lichtenstein, the mastermind behind the $6 billion Bitfinex crypto exchange hack, faces up to five years in prison after pleading guilty to a money-laundering conspiracy.
