Man Arrested for Hacking SEC’s X Account And Boosting Bitcoin Price

Federal authorities announced today that Eric Council Jr., a 25-year-old from Alabama, has been arrested for his role in hacking the U.S. Securities and Exchange Commission’s (SEC) X account. This hack occurred on January 9, 2024, when a false post claimed that the SEC had approved Bitcoin exchange-traded funds (ETFs).

The misleading tweet caused Bitcoin’s price to surge by over $1,000, capturing the attention of traders and investors. Shortly after the fake announcement, the SEC regained control of their account and confirmed that the post was unauthorized. Following this correction, Bitcoin’s value fell by more than $2,000.

According to the indictment, Council conspired with others to take unauthorized control of the @SECGov X account by performing a SIM swap on the phone account of a person identified only as “C.L.”

This method allowed hackers to trick phone companies into switching a phone number to a new SIM card they controlled. By doing this, Council could access the SEC’s X account and post the fake announcement.

U.S. Attorney Matthew M. Graves stated, “These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses to victims and leaks of sensitive personal and private information.”

He added, “Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets. Through indictments like this, we will hold accountable those who commit these serious crimes.”

Council faces charges of conspiracy to commit aggravated identity theft, and access device fraud. He is expected to appear in court later today in the Northern District of Alabama. FBI Acting Special Agent in Charge David Geist emphasized the seriousness of SIM swapping.

He commented, “SIM swapping is a method bad actors exploit to illicitly access sensitive information of an individual or company, with the intent of perpetrating a crime. In this case, the unauthorized actor allegedly utilized SIM swapping to manipulate the global financial market.”

This case is being investigated by the FBI’s Washington Field Office Criminal and Cyber Division, the SEC Office of Inspector General, and other law enforcement agencies. The arrest serves as a reminder of the ongoing threat of cybercrime and its potential impact on financial markets.