FBI arrests suspect in SEC Twitter hack that sent Bitcoin soaring

The Federal Bureau of Investigations (FBI) announced on Thursday that it had arrested a man and charged him with hijacking the Twitter account (also known as approved Bitcoin ETFs. This false statement immediately caused the price of Bitcoin to rise.

Eric Council Jr. of Athens, Alabama, was arrested Thursday and charged with the crime. Authorities allege the 25-year-old used a “SIM swapping” technique to take over a phone number and ultimately gain unauthorized access to the SEC’s Twitter account. The price of Bitcoin shot up by more than $1,000 shortly after, but then plunged by $2,000 as the announcement was refuted.

“These SIM swapping schemes, in which fraudsters trick service providers into giving them control of unsuspecting victims’ phones, can result in devastating financial losses to victims and the loss of sensitive personal and private information,” U.S. Attorney Matthew Graves said in an explanation. “Here the conspirators are said to have used their illegal access to a telephone to manipulate the financial markets. Through charges like these, we will hold accountable those who commit these serious crimes.”

The council, which also called itself “Ronin,” “AGiantSchnauzer,” and “Easymunny,” allegedly used stolen personal information from an SEC employee to create a fake ID. The council then drove 35 miles east of Athens to Huntsville, Alabama, to use the fake ID to purchase a new SIM card that was linked to the victim’s cell phone account.

However, the FBI did not say how the SEC employee’s information came into the council’s possession. Armed with the SIM card and a new iPhone, he accessed the SEC’s Twitter account and shared the login credentials with his co-conspirators.

“The Council shared these codes with members of the conspiracy, who then accessed the account – and posted a fraudulent tweet on the @SECGov on behalf of the SEC Chairman

Apparently intent on throwing law enforcement off its trail, the council allegedly drove 100 miles south of Athens to Birmingham, Alabama, to return the iPhone used in the hacking attack.

Following the Jan. 9 tweet, Bitcoin shot up to $47,680 before plummeting to $45,627, according to data from CoinGecko.

Recognizing the potential consequences of their actions, the FBI Council began scouring the Internet with questions such as “How can I know for sure if I am under investigation by the FBI” and “What are the signs that you are under legal investigation?” search or the FBI, even if you have not been contacted by them.”

Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law, the FBI noted. However, searching the internet for tips on how to tell if the FBI is investigating you probably won’t help his case.

If found guilty, Council faces a maximum of 15 years in prison for identity theft alone and three years in prison for impersonating a federal agency.

“Today’s arrest demonstrates our commitment to holding bad actors accountable for undermining the integrity of financial markets,” SEC Inspector General Deborah Jeffrey said in a statement.

Of course, the SEC finally announced the approval of Bitcoin ETFs for trading – a day later, on January 10th.

Edited by Andrew Hayward

Editor’s note: This story was updated with additional details after publication.