Key Points
- Eric Council Jr. was arrested for the 2024 hack of the U.S. Securities and Exchange Commission’s X account, falsely boosting Bitcoin value.
- Council has been charged with conspiracy to commit aggravated identity theft and access device fraud.
Eric Council Jr., a resident of Athens, Alabama, was taken into custody over his alleged involvement in the 2024 hack of the U.S. Securities and Exchange Commission’s X account.
This hack led to the false impression that the SEC had approved Bitcoin exchange-traded funds, causing a significant increase in the value of Bitcoin (BTC).
The Charges and the Hack
Council is facing charges of conspiracy to commit aggravated identity theft and access device fraud and is due for his first court appearance in the Northern District of Alabama.
The indictment reveals that Council and his accomplices conducted a “SIM swap” attack to gain unauthorized control of the SEC’s X account.
On January 9, 2024, they posted a fraudulent message from the SEC Chair, falsely claiming that Bitcoin ETFs had been approved for listing on national securities exchanges, causing Bitcoin’s value to surge by $1,000.
When the SEC regained control of the account and clarified that the message was fake, Bitcoin’s value fell by $2,000.
Sim Swap and Market Manipulation
SIM swapping is a cybercrime where attackers trick mobile phone carriers into transferring a victim’s phone number to a SIM card they control. This allows them to bypass security measures like two-step verification.
In this scenario, Council allegedly used a counterfeit ID to acquire a SIM card linked to the victim’s phone and then used this access to hijack the SEC’s X account.
According to the indictment, Council used online aliases like “Ronin,” “Easymunny,” and “AGiantSchnauzer” and obtained personal identifying information and a victim’s photo and name from co-conspirators.
Using this information, Council created a fake ID with an ID card printer. He then used the fake ID to get a SIM card linked to the victim’s phone line at a cell phone store in Huntsville, Alabama.
With the SIM card and a new iPhone purchased with cash, Council accessed codes for the @SECGov X account and shared them with co-conspirators.
They used the codes to issue a fraudulent tweet on the @SECGov X account in the name of the SEC Chairman, falsely announcing the SEC’s approval of BTC ETFs.
Council received Bitcoin payment for the successful SIM swap and later returned the iPhone for cash in Birmingham, Alabama, as per the FBI.
Afterwards, Council searched the internet for terms such as “SECGOV hack,” “telegram sim swap,” “how can I know for sure if I am being investigated by the FBI,” and “What are the signs that you are under investigation by law enforcement or the FBI even if they have not contacted you.”
FBI Warning and Reaction
U.S. Attorney Graves stressed the serious consequences of SIM swapping schemes, which can lead to significant financial losses. “Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets,” he said.
Principal Deputy Assistant Attorney General Argentieri highlighted how Council and his accomplices exploited this access to falsely increase Bitcoin’s price, underscoring the Justice Department’s dedication to prosecuting cybercrimes that threaten market integrity.
FBI Acting Special Agent in Charge Geist also pointed out that SIM swapping continues to be used by cybercriminals to exploit financial systems. “The FBI will continue to work tirelessly with law enforcement to hold accountable those who break U.S. laws,” he said.