The FBI has arrested Eric Council Jr. from Alabama for allegedly hacking the Securities and Exchange Commission’s (SEC) social media account on X (formerly Twitter) to post false claims of Bitcoin ETF approvals. He faces charges of conspiracy to commit identity theft and access device fraud, according to a press release from the Department of Justice.
Eric Council Jr. is accused of orchestrating a cyberattack that led to fraudulent posts being shared from the SEC’s X account in January 2024. He allegedly worked with accomplices to hack the account, causing significant disruptions in the cryptocurrency market.
The unauthorized posts were made in January 2024, just days before the SEC formally approved spot Bitcoin ETFs. Council was arrested recently and is expected to appear in court on Thursday, October 19, in Alabama.
Council executed the cybercrime from Alabama. He allegedly used a SIM swap to take control of the SEC’s X account, posting fake information from the compromised account. The FBI reported that after completing the attack, he returned the iPhone used in the SIM swap for cash in Birmingham, Alabama.
Council’s motivation was financial, as he reportedly received Bitcoin as payment for successfully hacking the SEC’s X account. His false post about Bitcoin ETF approvals caused Bitcoin’s price to jump by $1,000 before it quickly dropped by $2,000 when the news was confirmed to be false.
The FBI stated that Council conducted a SIM swap to take over the phone number of an individual with access to the SEC’s X account. Once he gained control, he and his co-conspirators posted false announcements regarding the approval of Bitcoin ETFs, manipulating the market. Council was paid in Bitcoin for his role in the scheme.
This arrest marks a significant step in tackling cybercrime and market manipulation. The SEC expressed gratitude to law enforcement for their swift action in holding those responsible for the breach accountable. The case emphasizes the importance of cybersecurity in protecting financial markets from fraud and manipulation.
