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- The FBI has arrested the person they believe hacked the SEC’s X account, posting false Bitcoin ETF news
- The post led to a temporary spike in Bitcoin’s price, causing market volatility before the SEC confirmed it was a hoax
- Council allegedly executed a SIM swap attack to take control of the SEC’s account, facing multiple charges
The Federal Bureau of Investigations (FBI) has arrested the person they believe hacked the Securities and Exchange Commission’s (SEC) X account and posted fake news of a Bitcoin ETF in January. Eric Council Jr. was arrested for orchestrating the hack which caused Bitcoin’s price to briefly soar by $1,000, only to plummet by $2,000 once it was revealed to be a hoax. According to the indictment, Council used a SIM swap attack to gain access to the SEC’s social media account and wreak havoc.
SIM Swap Attack
According to the FBO, Council and his accomplices employed a sophisticated SIM swap scheme, where Council tricked mobile service providers into giving him control of a victim’s phone number. This technique gave Council access to the SEC’s X account, enabling him to post the false news.
Council obtained personal identifying information and an identification card template containing a victim’s name and photo from co-conspirators, which he used in combination with an identification card printer to create a fake ID. Council proceeded to obtain a SIM card linked to the victim’s phone line by presenting the fake ID at a cell phone provider store in Huntsville, Alabama, using a newly bought phone to obtain access codes to the @SECGov X account. Hsi co-conspirators then accessed the account SEC’s account and made the post.
Council is said to have received bitcoins in payment for performing the successful SIM swap, after which he drove to Birmingham, Alabama to return the iPhone used in the SIM swap for cash.
Market Manipulation Tactics
In announcing Council’s arrest, U.S. Attorney Matthew Graves noted, “This case highlights the vulnerabilities in both the financial and social media systems when criminals gain unauthorized access.” SIM swaps have been used several times in order to allow hackers to target high-net-worth individuals in the crypto space, with phone companies typically blamed.
Council is now facing several serious charges, including aggravated identity theft and wire fraud. If convicted, he could face substantial prison time. Council’s court date is yet to be confirmed, but authorities are continuing to investigate the full scope of the hack.
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