Eric Council Jr., a 25-year-old from Athens, Alabama, has been arrested by the FBI for hacking the U.S. Securities and Exchange Commission’s X account. The hack led to a false announcement that the SEC had approved Bitcoin exchange-traded funds, causing a significant increase in the value of Bitcoin.
Council has been charged with conspiracy to commit aggravated identity theft and access device fraud. He is expected to appear in court in the Northern District of Alabama. The indictment reveals that Council and his co-conspirators used a SIM swap attack to gain unauthorized control of the SEC’s X account. This cybercrime involves tricking mobile phone carriers into transferring a victim’s phone number to a SIM card controlled by the attackers.
Using usernames like “Ronin,” “Easymunny,” and “AGiantSchnauzer,” Council obtained personal information and a victim’s photo and name from his co-conspirators. He then created a fake ID to obtain 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 his accomplices to issue a fraudulent tweet on the account in the name of the SEC Chairman, falsely announcing the approval of Bitcoin ETFs.
After successfully completing the SIM swap, Council received Bitcoin payment and later returned the iPhone for cash in Birmingham, Alabama. He then searched the internet for information on being investigated by the FBI, indicating a level of awareness of potential consequences for his actions.
U.S. Attorney Graves highlighted the seriousness of SIM swapping schemes, emphasizing the significant financial losses that can result from such cybercrimes. Principal Deputy Assistant Attorney General Argentieri pointed out how Council and his partners manipulated financial markets to boost Bitcoin’s price, underscoring the Justice Department’s commitment to prosecuting cybercrimes that threaten market integrity. FBI Acting Special Agent in Charge Geist warned about the continued use of SIM swapping by cybercriminals to exploit financial systems, reaffirming the FBI’s dedication to holding accountable those who violate U.S. laws.
This case serves as a reminder of the risks associated with cybercrimes and the importance of safeguarding personal information to prevent unauthorized access and manipulation of financial systems. The collaboration between law enforcement agencies like the FBI is crucial in identifying and prosecuting individuals involved in such illegal activities to uphold the integrity of financial markets and protect the public from potential harm.
