- Eric Council Jr. was arrested in Alabama for hacking the SEC and falsely announcing a Bitcoin ETF, causing a brief surge in Bitcoin prices.
- Council is charged with aggravated identity theft and access device fraud, exposing vulnerabilities in government social media security.
In a striking display of the vulnerabilities within our digital security infrastructures, Eric Council Jr., a 25-year-old man from Athens, Alabama, was recently apprehended by the FBI. Council’s arrest stemmed from his involvement in a cybersecurity incident that manipulated the cryptocurrency market by exploiting the social media account of the U.S. Securities and Exchange Commission (SEC).
The Incident Unfolds
On January 9, 2024, Council, alongside accomplices, orchestrated a sophisticated breach of the SEC’s Twitter account, previously known as X. The attackers utilized a SIM swap attack—a method where attackers transfer a victim’s phone number to a device under their control. This tactic allowed them to bypass two-factor authentication, granting them unauthorized access to the SEC’s account.
Once in control, the hackers announced the approval of a Bitcoin exchange-traded fund (ETF), a statement that was completely fabricated. This false announcement caused an immediate spike in Bitcoin’s price, surging by $1,000. However, the SEC regained control shortly after and debunked the announcement, which then led to a sharp $2,000 decline in Bitcoin value.
Council is accused of using stolen personal data to create a false identity, which facilitated the acquisition of a new SIM card and iPhone. These tools were critical in executing the hack, demonstrating a high level of premeditation and sophistication in the methods used.
Broader Implications
This incident not only impacted the cryptocurrency market but also exposed the potential for significant security weaknesses in official social media accounts of government bodies. The rapid rise and fall in Bitcoin price reflected the high sensitivity of financial markets to such deceptive maneuvers.
David Geist, acting special agent from the FBI, emphasized the ongoing efforts to combat cyber fraud, including SIM swapping, which criminals exploit to gain access to sensitive information and manipulate markets. The FBI’s swift action in this case highlights their commitment to curbing such disruptive and illegal activities that pose a threat to the integrity of global financial systems.
The charges against Council, including conspiracy to commit aggravated identity theft and access device fraud, underscore the serious repercussions of such cybercrimes. His initial court appearance is scheduled to take place in the Northern District of Alabama, with a legal team led by Assistant U.S. Attorney Kevin Rosenberg and other specialists from the Department of Justice.