FBI arrests Alabama man in connection with fake SEC Bitcoin ETF post

Eric Council Jr. has been charged with conspiracy to commit aggravated identity theft and access device fraud
In January, the SEC’s X account was hacked with a post claiming that the agency had approved the first Bitcoin ETF
A day later, the SEC approved the first Bitcoin ETFs

A 25-year-old man from Athens, Alabama has been arrested by the FBI for allegedly hacking the US Securities and Exchange Commission’s (SEC) X account.

According to an announcement from the US Attorney’s Office, District of Columbia, Eric Council Jr. is accused of being part of a group that falsely posted a message on the SEC’s X account claiming they had approved the first Bitcoin exchange-traded fund (ETF).

Council has been charged with conspiracy to commit aggravated identity theft and access device fraud.

In the name of Gary Gensler, the SEC’s Chair, the group posted a message on January 9 stating:

“Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”

Shortly after the tweet was posted, the price of Bitcoin rose by $1,000.

Realizing the SEC account had been compromised, Gensler was quick to deny the news, saying that the agency hadn’t “approved the listing.” Following that news, the price of Bitcoin dropped by $2,000.

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.

— Gary Gensler (@GaryGensler) January 9, 2024

Notably, a day later, the SEC approved the first Bitcoin ETF.

SIM swapping

Authorities state that Council used a “SIM swapping” technique to gain control of the SEC’s account.

Nicole Argentieri, Principal Deputy Assistant Attorney General of the Justice Department’s Criminal Division, said that Council allegedly “accessed the SEC’s account on X by using the stolen identity of a person who had access to the account to take over their cellphone number.”

“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,” said United States Attorney Matthew Graves.

According to the statement, Council, who also went by the names “Ronin,” “Easymunny,” and “AGiantSchnauzer,” is said to have received the victim’s name and photo and a template containing the victim’s details from co-conspirators. He then used this information to create a fake ID.

Council then traveled to Huntsville, Alabama to obtain a new SIM card linked to the victim’s phone and bought a new iPhone in cash. With the two, he obtained access codes to the SEC’s X account. These codes were shared with the co-conspirators who issued the fake tweet.

Council is said to have received payment in Bitcoin for completing the SIM swap. He then drove to Birmingham, Alabama to return the iPhone for cash. Conscious of his actions, the FBI said that Council conducted internet searches, including “what are the signs that you are under investigation by law enforcement?”