FBI Arrests Alabama Man for SEC X Account Hack That Caused Bitcoin Price Surge

TLDR:

• FBI arrested 25-year-old Eric Council Jr. for hacking the SEC’s X account in January 2024
• The hack involved a fake tweet about Bitcoin ETF approval, causing BTC price to spike
• Council allegedly used a SIM swap attack to gain access to the SEC account
• He’s charged with conspiracy to commit aggravated identity theft and access device fraud
• The incident occurred just before the SEC actually approved Bitcoin ETFs

On October 17, 2024, the FBI arrested 25-year-old Eric Council Jr. of Athens, Alabama, in connection with the January 9 hack of the Securities and Exchange Commission’s X (formerly Twitter) account.

The incident, which briefly sent Bitcoin prices soaring, has led to charges of conspiracy to commit aggravated identity theft and access device fraud.

According to the Department of Justice, Council allegedly executed a SIM swap attack to gain control of a phone number linked to the SEC’s X account. This technique involves tricking a mobile service provider into transferring a victim’s phone number to a SIM card controlled by the attacker. Once in control of the number, Council reportedly shared access codes with co-conspirators who posted a false tweet from the SEC account.

The fake tweet, purportedly from SEC Chairman Gary Gensler, stated:

“Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”

This announcement, coming at a time when the SEC was considering approval of Bitcoin exchange-traded funds, caused the cryptocurrency’s price to spike by more than $1,000.

The SEC quickly regained control of its account and announced that the tweet was false and the result of a hack. Following this clarification, the value of Bitcoin reportedly decreased by more than $2,000 per coin.

Prosecutors allege that Council, who used online aliases including “Ronin,” “Easymunny,” and “AGiantSchnauzer,” received payment in Bitcoin for his role in the hack.

Following the incident, he allegedly conducted internet searches for terms such as:

• “SECGOV hack,”
• “how can I know for sure if I am being investigated by the FBI,”
• “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”

The hack occurred just one day before the SEC actually approved rule changes allowing the creation of Bitcoin ETFs in the United States, adding an layer of irony to the incident.

Council appeared in U.S. District Court in Huntsville, Alabama, where he was ordered held without bail. His case will be prosecuted in federal court in Washington, D.C., where a grand jury had issued the indictment against him.

The incident has raised concerns about the security of high-profile social media accounts and the potential for market manipulation through false information. It also highlights the growing intersection of cryptocurrency, traditional finance, and cybersecurity.

U.S. Attorney Matthew Graves emphasized the seriousness of SIM swapping schemes, stating, “These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses to victims and leaks of sensitive personal and private information.”

Principal Deputy Assistant Attorney General Nicole M. Argentieri added, “Council’s indictment underscores the Criminal Division’s commitment to countering cybercrime, especially when it threatens the integrity of financial markets.”

The SEC has thanked law enforcement for their efforts in seeking accountability for the breach of their X account. As the case moves forward, it serves as a reminder of the ongoing challenges in protecting sensitive information and maintaining the integrity of financial markets in the digital age.

Council’s mother, Kimberly Council, expressed surprise at the news of her son’s arrest, describing him as someone who had never been in trouble before. She stated that she had not spoken to Eric since his arrest and was still trying to understand the situation.