FBI Arrests Alabama Man for Hacking SEC Bitcoin ETF Announcement

Eric Council Jr. has been arrested for conspiracy related to aggravated identity theft and access device fraud
In January, the SEC’s X account faced hacking, leading to a post claiming the agency had approved the first Bitcoin ETF
The following day, the SEC did approve the first Bitcoin ETFs

A 25-year-old man from Athens, Alabama has been taken into custody by the FBI for allegedly hacking into the US Securities and Exchange Commission’s (SEC) X account.

According to an announcement from the US Attorney’s Office for the District of Columbia, Eric Council Jr. is accused of participating in a group that falsely tweeted from the SEC’s X account, asserting they had authorized the first Bitcoin exchange-traded fund (ETF).

Council faces charges for conspiracy to commit aggravated identity theft and access device fraud.

Impersonating Gary Gensler, the SEC’s chair, the group tweeted on January 9, stating:

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

Following the tweet, Bitcoin’s price surged by $1,000.

Upon realizing the SEC account was compromised, Gensler quickly retracted the claim, clarifying that the agency had not “approved the listing.” This caused Bitcoin’s price to plummet by $2,000.

The @SECGov twitter account has been compromised, and an unauthorized tweet was posted. The SEC has not approved the listing or trading of spot bitcoin exchange-traded products.

— Gary Gensler (@GaryGensler) January 9, 2024

Interestingly, a day later, the SEC did approve the first Bitcoin ETF.

SIM Swapping

Authorities report that Council used a “SIM swapping” technique to take control of the SEC’s account.

Nicole Argentieri, Principal Deputy Assistant Attorney General for the Justice Department’s Criminal Division, stated that Council allegedly “gained access to the SEC’s account on X by exploiting the stolen identity of an individual with account access to obtain their cellphone number.”

“These SIM swapping schemes, where criminals deceive service providers into granting them control over victims’ phones, can lead to severe financial losses for victims and expose sensitive personal information,” remarked United States Attorney Matthew Graves.

According to the announcement, Council, who is also known by the aliases “Ronin,” “Easymunny,” and “AGiantSchnauzer,” reportedly acquired the victim’s name and photo along with a template containing the victim’s details from co-conspirators. He then utilized this information to forge an ID.

Subsequently, Council traveled to Huntsville, Alabama to obtain a new SIM card associated with the victim’s phone and paid cash for a new iPhone. With these, he secured access codes to the SEC’s X account, which he shared with his co-conspirators who sent out the fraudulent tweet.

Council allegedly received Bitcoin as payment for executing the SIM swap, then drove to Birmingham, Alabama to sell the iPhone for cash. Aware of his wrongdoing, the FBI reported that Council searched online for “what are the signs that you are under investigation by law enforcement?”