A 25-year-old man from Athens, Alabama, named Eric Council Jr., has been arrested by the FBI for allegedly hacking into the US Securities and Exchange Commission’s (SEC) X account.
The US Attorney’s Office revealed that Council was part of a group that posted a misleading message on the SEC’s account, falsely claiming the approval of the first Bitcoin exchange-traded fund (ETF).
Council faces serious charges, including conspiracy to commit aggravated identity theft and access device fraud. On January 9, the group posted a tweet in the name of SEC Chair Gary Gensler, stating that Bitcoin ETFs had been approved for listing. This announcement caused Bitcoin’s price to surge by $1,000, but Gensler quickly refuted the claim, leading to a subsequent drop in Bitcoin’s value by $2,000.
Authorities allege that Council used a method known as “SIM swapping” to take control of the SEC’s account. This technique involves tricking service providers into transferring a victim’s phone number to the fraudster’s device.
Nicole Argentieri from the Justice Department highlighted the severe risks associated with such schemes, which can lead to significant financial losses and breaches of sensitive information.
Council, who also went by several aliases, reportedly obtained personal details of a victim from his accomplices and created a fake ID to acquire a new SIM card linked to the victim’s phone. He then purchased a new iPhone with cash, which allowed him to access the SEC’s account.
After completing the SIM swap, he was compensated in Bitcoin and later returned the iPhone for cash. Notably, the FBI discovered that Council had been searching online for signs of being under investigation, indicating his awareness of the potential consequences of his actions.
