FBI Arrests US SEC Twitter Hacker Responsible For Fake Bitcoin ETF Approval Post

The Federal Bureau of Investigation (FBI) has apprehended Eric Council Jr., 25, of Athens, Alabama in relation to the January 2024 unauthorized access of the United States Securities and Exchange Commission (SEC) X account, formerly Twitter.

The arrest comes after Council was accused of participating in a hacking spree that saw a fake post from the US SEC Chair’s account which increased the value of Bitcoin for some time.

US SEC Twitter Hacker Responsible For Fake Bitcoin ETF Arrested

As per the indictment, Eric Council engaged in the conspiracy to assume control of the US SEC’s X account on January 9, 2024.

The type of fraud performed was a SIM swap attack, which involves redirecting a phone number belonging to someone else to a device owned by the fraudster. With this method, Council and his accomplices gained access to the SEC’s account.

Once they gained control, they sent a fake message from the SEC Chairman saying the agency had allowed Bitcoin ETFs to be listed on all the national securities exchanges. This announcement led to a rise in the price of Bitcoin by more than $1000. However, after the US SEC regained control of its account and made a correction, the price of Bitcoin dropped by more than $2,000.

Allegations of Conspiracy and Identity Theft

According to the Federal Bureau of Investigation, Eric Council used personal identifying information (PII) from a victim and applied for a SIM card that is associated with this person’s phone line. Council allegedly got the PII and an identification card template from his co-conspirators, who were also involved in the offense. 

He then used a fake ID to do the SIM swap at a mobile phone company in Huntsville, Alabama.

Once Council was able to obtain control of the victim’s phone number, he bought a new iPhone and used it to sign into the SEC’s X account. Eric Council then provided the account access codes to other persons who put up the deceptive tweet on the account. The announcement revealed that the Council received payment in Bitcoin for his part in the scheme.

Investigations and Cybercrime Charges

Council is being accused of conspiracy to commit aggravated identity theft and access device fraud. He is scheduled to enter a plea for the first time in the Northern District of Alabama. The U.S. Attorney Matthew M. Graves also noted that SIM swapping is a very dangerous crime that can bring significant financial losses and compromise of sensitive data.

Council’s online activity also attracted attention, as he searched for terms such as “SECGOV hack” and “how can I know for sure if the FBI is investigating me.” Investigators believe these searches indicate that Council was aware of potential law enforcement scrutiny. Authorities are continuing to investigate other individuals involved in the conspiracy.

Meanwhile, this case comes amidst increasing concerns over cybercrime and cryptocurrency-related fraud. In another major case, Ilya Lichtenstein, mastermind of the $6 billion Bitfinex crypto exchange hack, faces up to five years in prison after pleading guilty to a money-laundering conspiracy

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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