FBI Arrests Suspected Hacker in Fake Bitcoin Tweet Investigation

The Federal Bureau of Investigation arrested an Alabama man Thursday accused of hacking into the Securities and Exchange Commission’s official X account in January in a scheme to falsely send a message that the regulator had approved the first spot Bitcoin exchange-traded fund. .

In its indictment, the agency accuses Eric Council, 25, of Athens, Alabama, of conspiracy to commit aggravated identity theft and device access fraud.

“…On January 9, 2024, the Board conspired with others to take unauthorized control of the @SECGov X account…and transmitted a false message…falsely announcing, in part, ‘Today , SEC Grants Approval for #Bitcoin ETFs Must Be Listed on All Registered National Securities Exchanges,’” according to the indictment, adding that the price of bitcoin soared more than $1,000 immediately afterward.

Ten Bitcoin spot apps received the green light from the SEC the next day to begin trading. These funds, along with an 11th that debuted in March, now manage more than $55 billion in assets, according to etf.com, and have fueled subsequent demand for crypto-focused investments.

The fake tweet, which spread through an investor community that had been waiting for approval for weeks, also highlighted the volatility of digital assets, which often move according to the latest statements on social media.

Learn more: Spot Bitcoin ETF Gets Approval Amid SEC Technical Issues

The indictment said the SEC regained control of his account shortly after confirming the unauthorized message resulting from the hack and that the price of bitcoin then plunged by $2,000. Bitcoin was then trading at around $45,000. It’s currently changing hands at nearly $69,000. The council received Bitcoin as payment for its services, the government said.

A SIM card scam

The Council allegedly took control of the SEC account through a SIM swap, a system in which fraudsters convince service providers to give them control of unsuspecting victims’ phones. A SIM (Subscriber Identity Module) card is a chip that contains information identifying and verifying a subscriber to a mobile phone.

According to the indictment, Council used identifying information and a photo he received from the co-conspirators to create a fake ID that allowed him to acquire a SIM card linked to the victim in Huntsville, Alabama. He then allegedly purchased a new phone which he used with the SIM card to access the @SECGov X account. He shared the code with his co-conspirators, who sent the false message.

“SIM swapping is a method exploited by bad actors to illegally access the sensitive information of an individual or company, with the intent to commit a crime,” said Principal Assistant Attorney General Nicole M . Argentieri of the Criminal Division of the US Department of Justice in a statement. “In this case, the unauthorized actor allegedly used SIM card swapping to manipulate the global financial market.”

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