FBI Arrests Hacker for False Endorsement of Bitcoin ETF Through SEC Account X

The Federal Bureau of Investigation announced that it has arrested Eric Council Jr., the hacker who posted a fake Bitcoin ETF spot endorsement message in January, illegally using the Securities and Exchange Commission’s X account. This post caused the price of Bitcoin to rise by over $1,000. Council is charged with conspiracy to commit aggravated identity theft and access device fraud.

“The indictment alleges that Eric Council, Jr. illegally accessed the SEC account on X by using the stolen identity of a person who had access to the account to take over his cell phone number,” a said the principal assistant attorney general of the Justice Department’s criminal division. Nicole M. Argentieri said in an official statement released on October 17.

The document states that the Council conspired with others to gain unauthorized control of the @SECGov X account via a SIM swap attack. SIM-Swappin is an account takeover scam that takes advantage of weak security practices. In this case, there is two-factor authentication and two-step verification, in which the second factor is a text message or a call made on a mobile phone. The fraud exploits the ability of a mobile phone service provider to port a phone number to another device via the SIM card.

The Board gained access to the SEC account and posted a false message in the name of the SEC Chairman. “Today the SEC grants approval for #Bitcoin
Bitcoin
ETFs intended to be listed on all registered national securities exchanges,” was a false message that sent Bitcoin prices soaring. When SEC authorities regained access to the X account, they clarified the fake announcement as unauthorized and the result of a security breach, leading to a BTC price drop of over $2,000.

The attacker, who operated under the online pseudonym “Ronin
Ronin
“, “Easymunny” and “AGiantSchnauzer”, obtained personal identification information and an ID card template containing the data of the authorized person. Using his ID card printer, he forged a fake ID card and, with the counterfeit ID card, went to a cell phone carrier store in Huntsville, Alabama, where he acquired a SIM card associated with the line victim’s telephone number.

Then he purchased a new iPhone in cash, using both the SIM card and the device to obtain access codes to the @SECGov X account. The Council then shared these codes with other members of the conspiracy , allowing them to access the account and post a fraudulent message. For his role in the successful SIM swap, Council was paid in BTC.

Perhaps the Council regretted the attack because after searching online for terms like “SECGOV hack”, “how do I know if I am under investigation by the FBI” and “What are the signs that law enforcement or the FBI is investigating.” you even if they haven’t contacted you.

“I don’t know if the SIM swapper has a lower IQ for these internet searches or the SEC for not using 2FA,” pseudonymous security researcher ZachXBT posted on X after the arrest was announced .