FBI arrests Alabama man behind SEC

An Alabama man was arrested Thursday morning after prosecutors said he hacked the U.S. Securities and Exchange Commission’s social media account, which posted a false announcement about the approval of spot Bitcoin exchange-traded funds. Eric Council Jr. is accused of taking over the SEC’s

The SEC’s Twitter account was hacked through SIM swapping

The Federal Bureau of Investigation (FBI) announced Thursday that a man has been arrested and charged with the hijacking of the Securities and Exchange Commission (SEC) Twitter (X) account. In January, he used the account to falsely claim that the authority had approved Bitcoin ETFs, causing a sudden spike in the price of Bitcoin.

Eric Council Jr., a 25-year-old from Athens, Alabama, was arrested Thursday. Authorities allege he used a “SIM swapping” technique to take over a phone number and gain unauthorized access to the SEC’s Twitter account. Following the false announcement, the price of Bitcoin rose by over $1,000, but quickly fell by $2,000 when the claim was debunked.

US Attorney Matthew Graves said: “These SIM swap 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.” 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.”

Here’s how the plan was executed

The indictment alleges that Eric Council, known online by pseudonyms such as “Ronin,” “Easymunny” and “AGiantSchnauzer,” conspired with others to obtain personal identification information (PII) from a victim, including an ID template the victim’s name and photo. Using this information, the council created a fake ID card using its ID card printer.

He then visited a cell phone provider store in Huntsville, Alabama, where he presented the fake ID to obtain a SIM card that was linked to the victim’s phone line. Using this SIM card, the council purchased a new iPhone in cash and acquired access codes for the @SECGov X account.

These codes were then passed on to his co-conspirators, who accessed the account and posted a fraudulent tweet on behalf of the SEC Chairman falsely announcing the approval of Bitcoin ETFs.

For facilitating the SIM swap, Eric received payment in Bitcoin. After the incident, he traveled to Birmingham, Alabama to return the iPhone used in the program for cash. Investigators later discovered that he had conducted internet research related to the hack, including questions about FBI investigations and the signs of such an investigation.