Eric Council Jr., a 25-year-old from Athens, Alabama, has been arrested in connection with the January 2024 hack of the U.S. Securities and Exchange Commission’s X account. This hack falsely indicated that the SEC had approved Bitcoin exchange-traded funds, leading to a significant surge in Bitcoin’s value.

Details of the Hack

Eric Council has been charged with conspiracy to commit aggravated identity theft and access device fraud. He is scheduled to make his initial court appearance in the Northern District of Alabama. The indictment reveals that Council and his co-conspirators executed a “SIM swap” attack to gain unauthorized control of the SEC’s X account.

Impact on Bitcoin

On January 9, 2024, the hackers posted a fraudulent message from the SEC Chair, falsely announcing that Bitcoin ETFs had been approved for listing on national securities exchanges. This fake announcement caused Bitcoin’s value to increase by $1,000. However, after the SEC regained control of the account and clarified that the message was false, Bitcoin’s value dropped by $2,000.

Understanding SIM Swapping

SIM swapping is a cybercrime where attackers deceive mobile phone carriers into transferring a victim’s phone number to a SIM card they control. This allows them to bypass security measures such as two-step verification. In this case, Council allegedly used a fake ID to obtain a SIM card linked to the victim’s phone, then hijacked the SEC’s X account.

Methodology of the Hack

According to the indictment, Council operated online using usernames like “Ronin,” “Easymunny,” and “AGiantSchnauzer.” He obtained personal identifying information and a victim’s photo and name from co-conspirators. Using this information, Council created a fake ID and used it to acquire a SIM card linked to the victim’s phone line at a cell phone store in Huntsville, Alabama.

A 25-year-old from Alabama who went by the online handles “AGiantSchnauzer” and “Easymunny.”

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 these 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.

Aftermath and Investigation

Following the hack, Council searched the internet for terms like “SECGOV hack,” “telegram sim swap,” and “how can I know for sure if I am being investigated by the FBI.”

Law Enforcement’s Response

U.S. Attorney Graves emphasized the severe 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 stated.

Principal Deputy Assistant Attorney General Argentieri underscored how Council and his accomplices used this access to falsely inflate Bitcoin’s price, highlighting the Justice Department’s dedication to prosecuting cybercrimes that threaten market integrity.

FBI Acting Special Agent in Charge Geist noted that SIM swapping remains a prevalent method 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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