Eric Council Jr., a 25-year-old from Athens, Alabama, was arrested in connection with the January 2024 hack of the U.S. Securities and Exchange Commission’s X account.
Council’s hack resulted in the false pretense that the SEC had approved Bitcoin exchange-traded funds, leading to a sharp spike in the value of Bitcoin (BTC).
Council has been charged with conspiracy to commit aggravated identity theft and access device fraud. He is set to make his first court appearance in the Northern District of Alabama.
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From SIM swap to market manipulation
According to the indictment, Council and his conspirators orchestrated a “SIM swap” attack to take unauthorized control of the SEC’s X account.
On January 9, 2024, they posted a fraudulent message from the SEC Chair, falsely stating that Bitcoin ETFs had been approved for listing on national securities exchanges. This announcement caused Bitcoin’s value to rise by $1,000.
SEC ACCOUNT WAS HACKED pic.twitter.com/EhOrPRwG3b
— Bitcoin Archive (@BTC_Archive) January 9, 2024
After the SEC regained control of the account and clarified that the message was fake, Bitcoin’s value dropped by $2,000.
SIM swapping is a cybercrime in which attackers trick mobile phone carriers into transferring a victim’s phone number to a SIM card they control, allowing them to bypass security measures like two-step verification.
In this case, Council allegedly used a fake ID to obtain a SIM card linked to the victim’s phone and then used this access to hijack the SEC’s X account.
Is the FBI investigating me?
According to the indictment, Council used usernames like “Ronin,” “Easymunny,” and “AGiantSchnauzer” online, 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 obtain a SIM card linked to the victim’s phone line at a cell phone store in Huntsville, Alabama.
At long last, here's the answer to who hacked the SEC's X account ahead of the Bitcoin ETF approval: A 25-year-old from Alabama who went by the online handles "AGiantSchnauzer" and "Easymunny" pic.twitter.com/iitBFFXLOj
— Leo Schwartz (@leomschwartz) October 17, 2024
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, according to the FBI.
After all this, 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.”
idk if the SIM swapper is more low iq for these internet searches or the SEC for not using 2FA pic.twitter.com/269RFjk4Tc
— ZachXBT (@zachxbt) October 17, 2024
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FBI warns of SIM swapping
U.S. Attorney Graves emphasized the serious implications 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 boost Bitcoin’s price, underscoring the Justice Department’s commitment to prosecuting cybercrimes that threaten market integrity.
FBI Acting Special Agent in Charge Geist also noted 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.
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