Man faces charges for hacking SEC
A 25-year-old man from Athens, Alabama, has been arrested by the FBI in connection with a cyberattack on the Securities and Exchange Commission’s (SEC) official social media account, leading to a significant disruption in the cryptocurrency market.
Eric Council Jr. was charged with conspiracy to commit aggravated identity theft and access device fraud, according to federal authorities.
The charges stem from a January 2024 incident where Council and his accomplices allegedly hacked into the SEC’s X (formerly Twitter) account and posted a fraudulent announcement claiming the SEC had approved the first-ever Bitcoin exchange-traded funds (ETFs) in the U.S.
The fake news caused a brief surge in Bitcoin’s value, jumping by over $1,000 in a matter of minutes.
However, the SEC quickly denied the announcement, with Chair Gary Gensler confirming that their account had been compromised.
The price of Bitcoin then plummeted by $2,000 after the false post was retracted.
Authorities believe the Council gained access to the SEC’s account through a “SIM swap” attack.
This technique allows hackers to take control of a victim’s phone number by transferring it to their own SIM card, bypassing security measures like two-factor authentication.
Council is accused of using a fake ID to obtain a SIM card tied to a victim’s phone number, giving him access to the SEC’s social media account.
According to U.S. Attorney Matthew Graves, SIM swap scams are often used to commit financial fraud and steal sensitive information.
In this case, the scheme was allegedly aimed at manipulating the financial markets through false information.
After posting the fake message about Bitcoin ETFs, Council received a payment in Bitcoin from his co-conspirators, federal authorities said.
He later attempted to cover his tracks by returning the phone he used in the scam and searching the internet for ways to detect FBI investigations.
The case highlights the growing threat of cyberattacks targeting financial markets and government agencies.
“This indictment underscores our commitment to holding cybercriminals accountable, particularly when their actions threaten market integrity,” said Nicole M. Argentieri, principal deputy assistant attorney general.
Council’s arrest comes as the SEC recently approved the launch of several Bitcoin ETFs, marking a milestone in the adoption of cryptocurrencies on Wall Street.
However, the incident has raised concerns over the security of digital systems and the impact of fake news on volatile markets.
The investigation remains ongoing as authorities seek to track down other members of the conspiracy.
