The FBI has apprehended an Alabama resident accused of hacking into the U.S. Securities and Exchange Commission’s X account, formerly known as Twitter, to disseminate false information about Bitcoin. This misinformation momentarily increased the cryptocurrency’s value by $1,000.
According to the U.S. Attorney’s Office for the District of Columbia, Eric Council Jr. allegedly acquired personally identifiable information and an ID template from accomplices, enabling him to fabricate a fake ID for an individual with access to the SEC’s X account. He purportedly used this counterfeit ID at a cell phone store in Huntsville, Alabama, to secure an iPhone with a SIM card associated with the victim’s phone number.
With the spoofed phone, Council allegedly assisted accomplices in accessing the SEC’s X account, from which they posted a false tweet stating, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” As compensation for his role, Council allegedly received payment in Bitcoin.
The activities of the 25-year-old following the incident suggest a lack of sophistication in executing the crime. The U.S. Attorney’s Office highlighted that Council engaged in several suspicious online searches, including phrases such as “SECGOV hack,” “telegram swap,” “how can I know for sure if I am being investigated by the FBI,” and “What are the signs you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”
The hack, which occurred on January 9, briefly inflated the value of Bitcoin until SEC Chairman Gary Gensler clarified from his own account that the information was incorrect, subsequently causing Bitcoin’s price to decrease by $2,000.
Coincidentally, the SEC approved 11 Bitcoin ETFs the following day but complicated the announcement by initially posting and then removing the approval document from its website, sparking confusion about the announcement’s authenticity.
Council faces charges of conspiracy to commit aggravated identity theft and access device fraud and was due for arraignment on Thursday in the U.S. District Court for the Northern District of Alabama.
U.S. Attorney Matthew Graves stated, “These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims’ phones, 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.”
