The FBI has arrested Eric Council Jr., a 25-year-old Alabama resident, for orchestrating the hack of the U.S. Securities and Exchange Commission’s (SEC) Twitter account, now known as X.
The incident, which occurred in January 2024, resulted in a fraudulent tweet falsely claiming the SEC had approved a Bitcoin Exchange-Traded Fund (ETF), causing a temporary surge in Bitcoin’s value by over $1,000 before plummeting $2,000 once the hoax was exposed. The disruption rattled financial markets, affecting investors globally.
Council allegedly used a SIM swap attack to gain unauthorized access to the SEC’s account.
SIM swapping involves tricking mobile carriers into transferring a victim’s phone number to a device controlled by the attacker, enabling them to bypass security measures such as two-factor authentication. After taking control of the account, Council and his co-conspirators posted the fraudulent message from the SEC Chair, leading to widespread confusion and market instability.
Authorities confirmed that Council received payment in Bitcoin for his role in the hack.
The aftermath of the attack saw the SEC quickly regaining control of its account and issuing a statement clarifying the false information. Meanwhile, the FBI’s investigation, involving both their Washington and Birmingham field offices, led to Council’s arrest.
He faces charges of conspiracy to commit aggravated identity theft and access device fraud, with a court appearance expected in the Northern District of Alabama
Under U.S. federal law, aggravated identity theft carries a mandatory minimum sentence of two years, which must run consecutively to any other sentences imposed. Access device fraud, on the other hand, could result in up to 15 years in prison, depending on the severity of the offense and the financial loss involved.
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