The Federal Bureau of Investigation (FBI) has apprehended Eric Council Jr., a 25-year-old resident of Athens, Alabama, for his alleged involvement in the unauthorized takeover of the U.S. Securities and Exchange Commission’s (SEC) X account in January 2024.
The incident caused a brief but substantial fluctuation in Bitcoin’s value, highlighting the potential impact of social media manipulation on financial markets, according to a report by the US Attorney General’s Office.
On January 9, 2024, the SEC’s X account (@SECGov) was compromised, and a false announcement was posted claiming the approval of Bitcoin ETFs for listing on all registered national securities exchanges.
This fraudulent tweet immediately boosted Bitcoin’s price by over $1,000. However, once the SEC regained control of the account and issued a correction, the cryptocurrency’s value plummeted by over $2,000.
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The Arrest and Charges
Council was arrested in Athens, Alabama, and is facing charges of conspiracy to commit aggravated identity theft and access device fraud.
The indictment, unsealed on the day of his arrest, reveals the sophisticated nature of the cyber attack.
The hackers employed a technique known as a “SIM swap” to gain unauthorized access to the SEC’s X account. This method involves:
- Obtaining personal identifying information (PII) of a victim
- Creating a fake ID using the victim’s information
- Convincing a cell phone provider to transfer the victim’s phone number to a new SIM card
- Using the compromised phone number to bypass multi-factor authentication
Council, operating under aliases such as “Ronin,” “Easymunny,” and “AGiantSchnauzer,” allegedly played a crucial role in this process by creating the fake ID and obtaining the SIM card linked to the victim’s phone line.
U.S. Attorney Matthew M. Graves emphasized the severity of SIM swapping schemes, stating that they can result in devastating financial losses and leaks of sensitive information.
The case underscores the vulnerability of even high-profile accounts to sophisticated cyber-attacks and the potential for such incidents to manipulate financial markets.
FBI Acting Special Agent in Charge David Geist reaffirmed the bureau’s commitment to identifying, disrupting, and investigating cyber-enabled frauds, including SIM swapping.
The arrest reminds us of the ongoing efforts by law enforcement agencies to combat cybercrime and protect the integrity of financial systems.
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