FBI Arrests Man for Fake SEC Bitcoin ETF Approval Tweet

The Federal Bureau of Investigation (FBI) in the United States has detained an individual linked to a false tweet claiming that the Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) earlier this year.

As reported in a press release from the U.S. Attorney’s Office for the District of Columbia, the 25-year-old Eric Council has been charged with conspiracy to commit aggravated identity theft and access device fraud.

FBI Detains Individual Behind Misleading SEC Tweet

With the cryptocurrency community eagerly awaiting the SEC’s approval of the inaugural U.S. spot Bitcoin ETFs on January 9, Council managed to access the agency’s X account, where he posted a false announcement stating that the products were approved for trading.

This hoax triggered a rapid surge in Bitcoin’s (BTC) price, soaring by $1,000 to $47,800 in mere minutes. However, the value quickly plummeted by $2,000 to $45,400 after the SEC refuted the tweet, clarifying that its X account had been hacked and the announcement was unauthorized.

During investigations led by multiple U.S. agencies, it was uncovered that Council and his accomplices gained access to the SEC’s account through a Subscriber Identity Module (SIM) swap attack.

A SIM swap is a tactic that combines social engineering techniques to transfer a victim’s phone number from their SIM card to a SIM card controlled by cybercriminals. This tactic allows hackers to exploit vulnerabilities in security measures, such as two-factor authentication, and gain access to victims’ accounts and sensitive information.

Details of Council’s Attack on the SEC

A complaint from the U.S. Attorney’s Office alleges that Council used the stolen identity of an individual who had access to the SEC’s X account to take control of their phone number. Council, who is also known online as Ronin, Easymunny, and AGiantSchnauzer, reportedly acquired the personal identifying information (PII) of the SEC staff member from his co-conspirators.

He then utilized this PII to fabricate a fake ID, which he presented to perform the SIM swap at a cellular provider’s store in Huntsville, Alabama. Afterward, Council purchased a new iPhone and used the new SIM card and device to retrieve access codes to the SEC’s X account.

After posting the fraudulent tweet, Council allegedly received BTC as payment from his conspirators for his actions and eventually sold the iPhone for cash.

Notably, Council grew increasingly anxious following the incident and searched online for how to determine “if I am being investigated by the FBI.” He is scheduled to appear in court in the Northern District of Alabama on Thursday.