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Alabama Man Arrested for Hacking SEC’s Social Media Account to Manipulate Bitcoin Prices
A resident of Alabama has been apprehended by the FBI for allegedly breaching the social media account of the Securities and Exchange Commission on X, with the intention of inflating Bitcoin‘s market value. Although the specific evidence that led authorities to him remains unclear, it appears that Eric Council Jr., 25, may have anticipated his arrest. Prior to being taken into custody, he reportedly conducted online searches on his personal computer for terms such as “SECGOV hack,” “how can I know if I am under FBI investigation,” and “what are signs indicating you are being investigated by law enforcement.”
The Fake Tweet That Shook Bitcoin’s Value
On January 9, 2024, a tweet from the SEC’s official X account stated: “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” This announcement was highly awaited as it could significantly impact Bitcoin’s valuation. Following this misleading tweet, Bitcoin’s price surged by approximately $1,000 per coin within hours. However, there was a catch: no such decision had been made by the SEC; instead, someone had unlawfully accessed their social media account.
The Method Behind The Hack
According to information released by the U.S. Attorney’s Office for Washington D.C., an individual hacked @SECGov using a technique known as a “SIM swap.” A Subscriber Identity Module (SIM) card is an essential component in mobile devices that links them to their respective phone numbers. While SIM cards can be replaced through legitimate channels with proper identification verification from service providers like AT&T or Verizon, they can also be fraudulently obtained using forged IDs.
Council (known online as “@Easymunny”) allegedly executed this scheme in collaboration with unidentified accomplices. By acquiring a counterfeit ID containing details of an SEC employee who managed their social media presence, he convinced AT&T staff to issue him a new SIM card associated with that employee’s number. He then inserted this new SIM into an iPhone purchased outright and gained access to Twitter via Two-Factor Authentication codes sent to his device. Subsequently, he shared these credentials with his co-conspirators who used them to log into the SEC account and post false information about Bitcoin ETF approvals. For his role in this operation, Council reportedly received compensation in Bitcoin before returning both devices for refunds.
[Related:[Related:[Related:[Related:Montana breeder sentenced to six months in prison over illegal giant sheep hybrid clones.]
The Aftermath of The Hack
Despite an initial spike in Bitcoin’s value following the fraudulent tweet, it wasn’t long before regulators recognized what had transpired and regained control over their X account. As reported by The Verge, SEC Chairman Gary Gensler quickly clarified from his own profile regarding the incident; however confirmation of hacking led to immediate repercussions—Bitcoin plummeted nearly $2,000 during subsequent market corrections.
Moreover, Gizmodo highlighted additional complications faced by the SEC when they attempted on January 10—the day after being hacked—to announce actual approval for eleven different Bitcoin ETFs but mistakenly posted then deleted related documents online due to timing issues which left many speculating whether another breach had occurred.
Legal Consequences Awaiting Council
Currently facing charges including conspiracy related aggravated identity theft and access device fraud,Council has yet not disclosed whether he found answers during another internet search referenced in FBI documents regarding “Federal identity theft statute.”
The article originally appeared at Popular Science.
