- Eric Council Jr., 25, of Athens, Alabama, was arrested for his alleged involvement in a January 2024 hack of the SEC’s X account, where hackers posted a fake message that caused the value of Bitcoin to spike by $1,000.
- Council is charged with conspiracy to commit aggravated identity theft and access device fraud for allegedly using a SIM swap attack to gain unauthorized access to the SEC’s X account.
- The fake message posted by the hackers falsely announced that the SEC had approved Bitcoin ETFs for listing on national securities exchanges, causing Bitcoin’s price to initially surge before dropping by $2,000 after the SEC regained control and confirmed the announcement was unauthorized.
The US Department of Justice announced that an Alabama man was arrested for allegedly taking part in a hack of the SEC‘s X account that caused bitcoin’s price to spike.
Background on the Hack
On January 9, 2024, Eric Council Jr. of Athens, Alabama and others allegedly took unauthorized control of the SEC’s X account, formerly known as Twitter.
The hackers posted a fake announcement from the SEC chair stating that the SEC had approved bitcoin exchange-traded funds (ETFs). This caused the price of bitcoin to spike by over $1,000 per bitcoin.
Shortly after, the SEC regained control of the account and confirmed the announcement was fake. The price of bitcoin then dropped by over $2,000 per bitcoin.
Details of the Arrest
Council, 25, was arrested on October 17, 2024 in Athens, Alabama. He has been charged with conspiracy to commit identity theft and access device fraud.
Prosecutors allege Council used a SIM swap scheme to gain access to a cell phone number that had access to the SEC’s X account. He then shared the account credentials with other members of the conspiracy.
Council allegedly received bitcoin payments for performing the successful SIM swap.
Reaction from Authorities
The arrest was announced by the US Attorney’s Office, the DOJ Criminal Division, the FBI, and the SEC Inspector General.
Authorities stated this case shows their commitment to prosecuting crimes that undermine financial market integrity. The FBI said they will continue efforts to thwart SIM swap schemes targeting individuals and companies.
Conclusion
An indictment is a formal accusation, and all defendants are presumed innocent until proven guilty. The case remains under investigation by federal law enforcement.
