The US Department of Justice (DOJ) announced the arrest of Alabama resident Eric Council Jr. in connection with the infamous hack of the US Securities and Exchange Commission’s (SEC) X account in January 2024, which resulted in a fraudulent post falsely claiming that the SEC had approved the listing of Bitcoin exchange-traded funds (ETFs).
Fraudulent Bitcoin ETF Announcement
The indictment reveals that on January 9, 2024, the Council and accomplices orchestrated the unauthorized takeover of the SEC’s X account. They posted a message claiming, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”
This false announcement rapidly increased Bitcoin’s price, which later plummeted by over $2,000 once the SEC confirmed the post resulted from a security breach.
The unauthorized access was achieved through a method known as “SIM swapping,” where fraudsters trick telecommunications providers into transferring a victim’s phone number to the fraudster’s device.
Council’s Actions Following SEC Hack Exposed
According to the investigation, Council obtained personal identifying information from co-conspirators to create a fake ID, which he used to perform the SIM swap at a mobile phone provider in Huntsville, Alabama, which enabled him to access the SEC’s X account and post the misleading tweet.
After executing the hack, Council received Bitcoin for his role in the SIM swap. Following the incident, he drove to Birmingham, Alabama, to return the iPhone used in the scheme for cash.
Subsequent internet searches by Council included inquiries about the SEC hack, SIM swap tactics, and signs of a potential FBI investigation, indicating his awareness of the legal ramifications of his actions.
Council was taken into custody early Thursday morning and is set to make an initial court appearance in the Northern District of Alabama. He faces charges of conspiracy to commit aggravated identity theft and access device fraud, according to the indictment unsealed today.
At the time of writing, Bitcoin was trading at $67,500.
Featured image from DALL-E, chart from TradingView.com