Alabama man allegedly hacked SEC account X, causing bitcoin value to skyrocket with fake post

An Athens man was arrested by federal authorities after he said he helped hack the Securities and Exchange Commission’s (SEC) X account, driving up the value of bitcoin by $1,000 with a fake tweet.

Eric Council Jr., 25, was arrested this morning in Athens, according to the U.S. Attorney’s Office for the District of Columbia.

He was charged with conspiracy to commit aggravated identity theft and access device fraud.

According to the indictment, on January 9, the Council conspired with others to gain unauthorized control of the @SECGov X account and transmitted a false message in the name of the SEC Chairman.

The post announced, in part, “Today, the SEC approves the listing of #Bitcoin ETFs on all registered national securities exchanges.” Immediately after the tweet, the price of BTC increased by over $1,000 per bitcoin.

Shortly after the unauthorized posting, the SEC regained control of his X account and confirmed that the posting was unauthorized and the result of a security breach. Following this corrective disclosure, the value of BTC decreased by over $2,000 per bitcoin. At the time, the SEC was considering whether to approve exchange-traded funds (ETFs) holding Bitcoin.

The SEC hack happened via what’s called a “SIM swap.”

A SIM (Subscriber Identity Module) card is the chip that stores information identifying and authenticating a mobile phone subscriber. A SIM swap attack refers to the process of tricking an operator into reassigning a mobile phone number from the legitimate user’s SIM card to a SIM card and phone controlled by someone else.

According to prosecutors, Council – who used online nicknames such as “Ronin,” “Easymunny” and “AGiantSchnauzer” – assumed the stolen identity of someone with access to the SEC account to take over his cell phone number .

After receiving personal identifying information and a template ID card containing a victim’s name and photo from the co-conspirators, the Council then used its ID card printer to create a fake ID card. identity with this information.

He used it to obtain a SIM card linked to the victim’s phone line by presenting the fake ID at a cell phone provider’s store in Huntsville.

After purchasing a new iPhone in cash, he used both items to obtain access codes to the @SECGov X account. The Council shared these codes with members of the conspiracy, who then accessed the account – and published the fake tweet.

Authorities claim that the Council received a BTC payment for successfully completing the SIM swap. Shortly afterwards, the Council traveled to Birmingham to return the iPhone used in the SIM card swap for cash.

Prosecutors say he feared detection. He then searched the Internet for “SECGOV hack”, “telegram simulation exchange”, “how do I know for sure if I am under FBI investigation” and “What are the signs indicating that you are under investigation by law enforcement or the FBI? FBI even if you have not been contacted by them,” according to investigators.

U.S. Attorney Matthew Graves said the indictment shows that law enforcement will hold those who manipulate financial markets accountable.

“These SIM swapping schemes, in which fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can lead to devastating financial losses for victims and leaks of sensitive personal and private information “Graves said.