An Alabama man, Eric Council Jr., was arrested on Thursday morning for allegedly hacking the U.S. Securities and Exchange Commission’s (SEC) social media account. Prosecutors claim that Council hacked into the SEC’s Twitter account and posted a false announcement about the approval of spot bitcoin exchange-traded funds. This fake post caused a sudden spike in Bitcoin’s price.
The Federal Bureau of Investigation (FBI) revealed that Council used a technique called “SIM swapping” to take over a phone number, allowing him to gain unauthorized access to the SEC’s Twitter account. The false announcement regarding Bitcoin ETFs led to a surge in Bitcoin’s price, followed by a significant drop once the claim was debunked.
U.S. Attorney Matthew Graves commented on the incident, stating, “These SIM swapping schemes can result in devastating financial losses to victims and leaks of sensitive personal and private information. 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.”
The indictment detailed how Council and his co-conspirators obtained personal identifying information (PII) from a victim, created a fake ID, and used it to obtain a SIM card linked to the victim’s phone line. With this SIM card, Council purchased a new iPhone and acquired access codes for the @SECGov X account, which were then used to issue the fraudulent tweet about Bitcoin ETF approval.
Following the SIM swap, Council received payment in Bitcoin and traveled to return the iPhone for cash. Investigators later discovered that he had searched online for information related to the hack and potential FBI investigations.
The arrest of Eric Council Jr. highlights the serious consequences of cybercrimes and the importance of safeguarding sensitive information. The SEC’s Twitter hack serves as a reminder of the risks associated with social media account security and the need for enhanced cybersecurity measures to prevent similar incidents in the future.