The FBI arrested Eric Council Jr., 25, in Athens, Alabama, in connection with the January 2024 hack of the Securities and Exchange Commission (SEC)’s social media account on X (formerly Twitter).
Council allegedly conspired with others to take unauthorized control of the SEC’s account and falsely announced the approval of bitcoin Exchange Traded Funds (ETFs) under SEC Chair Gary Gensler’s name.
The false post caused a spike in Bitcoin’s price by over $1,000 before it plummeted by $2,000 after the SEC clarified the breach.
According to the indictment, the Council used a SIM swap to fraudulently access the account, impersonating a victim with legitimate access. SIM swapping involves tricking a phone carrier into reassigning a victim’s phone number to the hacker’s SIM card, allowing access to the victim’s accounts. This allowed Council and his co-conspirators to post the fraudulent message, temporarily manipulating the financial markets.
Council has been charged with conspiracy to commit aggravated identity theft and access device fraud. If convicted, he faces up to five years in prison. The case is being investigated by the FBI Washington Field Office and the SEC Office of Inspector General.
