The Federal Bureau of Investigation (FBI) has arrested Eric Council Jr., a 25-year-old resident of Athens, Alabama, in connection with a hack that compromised the official X account of the U.S. Securities and Exchange Commission (SEC) in January 2024.
In a statement issued on October 17, the FBI confirmed that Council faces charges of conspiring to commit access device fraud and aggravated identity theft.
Allegations of Fraudulent Activity
Council is alleged to be part of a group that hacked the SEC’s X account, where they posted a fraudulent message claiming that the SEC had approved the first Bitcoin exchange-traded funds (ETFs). This misleading announcement triggered a spike in Bitcoin’s price by more than $1,000, leading to significant market disruption.
SEC Chair Gary Gensler quickly refuted the false information, stating that the agency’s account had been compromised and that the SEC had not approved the listing and trading of spot Bitcoin ETFs.
Technical Manipulation via SIM Swap Attack
The group reportedly employed a “SIM swap” attack, deceiving a mobile service provider into transferring a victim’s phone number to Council’s SIM card. This maneuver allowed them to bypass security measures and issue the fraudulent tweet.
U.S. Attorney Matthew Graves underscored the dangers posed by SIM swapping schemes, in which fraudsters take control of victims’ phones, leading to severe financial losses and privacy breaches. He remarked, “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.”
Council’s Methods and Online Presence
Using various online aliases, including “Ronin,” “Easymunny,” and “AGiantSchnauzer,” Council is accused of creating a fake ID using personal information obtained from his co-conspirators. He acquired a new iPhone and a SIM card linked to the victim’s number, granting him access to the SEC’s account, which he then shared with his accomplices in exchange for payment in Bitcoin.
As part of the investigation, Council reportedly searched online for information related to the SEC hack, SIM swapping, and indicators of an FBI investigation.
Authorities allege that Council unlawfully accessed the SEC’s X account by using the stolen identity of an authorized individual, enabling him and his associates to post the fraudulent announcement about Bitcoin ETF approvals.
Ongoing Investigation
The investigation has involved multiple agencies, including the FBI’s Washington Field Office and the SEC’s Office of Inspector General. Following the fraudulent tweet, the SEC subsequently approved 11 Bitcoin ETFs the day after the incident, with these funds now managing assets exceeding $63.5 billion. Council is expected to make his initial court appearance in the Northern District of Alabama later today.
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