The FBI arrested Eric Council Jr., a 25-year-old from Athens, Alabama, in January 2024 for unauthorized control of the SEC X account. He posted fake news about Bitcoin ETF approval, causing a $1,000 BTC price surge. He faces charges of aggravated identity theft and access device fraud.
According to the press release, the Council took over the account using a SIM swap technique, impersonating an individual with access to the account. He also conspired to post a fake announcement of the SEC approving Bitcoin ETFs, which caused Bitcoin to briefly surge, starting a jump of $1,000. Thereafter, Bitcoin lost $2,000 as the SEC came forward and clarified that, indeed, it was a hack.
Authorities quickly regain control over the SEC account
It took little time for the authorities to return the account to the SEC managers, but this incident sent ripples through the financial markets. This arrest underlines the emerging threat of SIM swapping, a means for bypassing two-factor authentication that frees up sensitive accounts for criminal use. US Attorney Graves spoke to the seriousness of the crime, in particular when used to manipulate financial markets.
It emerged from the investigation that the Council used fake identification for the SIM swap. He bought an iPhone, giving access codes to co-conspirators who then tweeted the fraud. Council later returned the iPhone for cash and looked to see if the FBI was investigating him online.
This case was investigated by the FBI and the SEC, with significant assistance provided by the Department of Justice. This arrest of Council underlines law enforcement’s commitment to fighting cybercrime, especially when it involves undermining the financial markets. He will appear in court in the Northern District of Alabama.
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