- Eric Council Jr. Charged with conspiracy to commit aggravated identity theft and access device fraud.
- Last January, the SEC’s X account was hacked with posts claiming the agency had approved the first Bitcoin ETF.
- A day later, the SEC approved the first Bitcoin ETF.
A 25-year-old man from Athens, Alabama, was arrested by the FBI on suspicion of hacking into the U.S. Securities and Exchange Commission (SEC)
According to an announcement from the U.S. Attorney’s Office for the District of Columbia, Eric Council Jr. was indicted as part of a group that falsely posted messages claiming to have approved the first Bitcoin exchange-traded fund (ETF) on the SEC’s .
Council was charged with conspiracy to commit aggravated identity theft and access device fraud.
In the name of SEC Chairman Gary Gensler, the group posted the following message on January 9:
“Today the SEC approved the #Bitcoin ETF for listing on all registered national stock exchanges.”
Immediately after the tweet was posted, the price of Bitcoin rose by $1,000.
After realizing his SEC accounts had been compromised, Gensler quickly denied the news, saying the agency had not “approved the listing.” After the news, the price of Bitcoin fell by $2,000.
that @SECGov The Twitter account was compromised and unauthorized tweets were posted. The SEC has not approved the listing and trading of spot Bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
Notably, a day later the SEC approved the first Bitcoin ETF.
SIM swap
Authorities said the commission used “SIM swapping” technology to control SEC accounts.
Nicole Argentieri, Assistant Attorney General for the Justice Department’s Criminal Division, said the committee “accessed
“Such SIM swapping schemes, which allow fraudsters to trick service providers into taking control of unsuspecting victims’ phones, can result in significant financial losses for victims and the disclosure of sensitive personal information,” said U.S. Attorney Matthew Graves. He said.
According to the statement, the council, which uses the names ‘Ronin’, ‘Easymunny’ and ‘AGiantSchnauzer’, received a template from the co-conspirators containing the victim’s name, photo and details of the victim. He then used this information to create fake IDs.
Council then traveled to Huntsville, Alabama to obtain a new SIM card connected to the victim’s cell phone and purchased a new iPhone with cash. Through the two, he obtained access codes to the SEC’s X account. This code was shared with co-conspirators who published fake tweets.
The council reportedly received payment in Bitcoin to complete the SIM swap. He then drove to Birmingham, Alabama to return the iPhone for cash. The FBI said it was aware of his actions and conducted an Internet search of the council, including “What are the signs that you are under investigation by law enforcement?”