Lawrence Damilola
The Federal Bureau of Investigation (FBI) has arrested 25-year-old Eric Council Jr. from Athens, Alаbama, for hacking the Securitiеs and Exchange Commission’s (SEC) X account.
According to a press release from the FBI today, Council worked with co-conspirators to gain control of the SEC’s account and post a false message regarding Bitcoin exchange-traded funds (ETFs).
False SEC Post Causes Bitcoin Price Surge
On January 9, 2024, the SEC’s X account falsely posted, “Approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” The message caused Bitcoin’s price to increase by $1,000. The price then dropped by $2,000 after the SEC regаined control of its account, deleted the post, and confirmed that the information was false.
The SEC ultimately approved Bitcoin ETFs the following day, but the prior unauthorizеd post had already affected the market. According to the FBI, Council was allegedly compensated with Bitcoin for his role in the scheme.
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Indictment Details on Account Takeover
Court documents state that Council used fraudulent tactics to take control of the SEC’s X account. He allegedly created a fake ID using the personal information of the account holder and deceived AT&T into issuing a SIM card tied to the viсtim’s phone number. Using that SIM card, Council received account recovery codes sent to the phone number and accessed the account.
After gaining access, Council reportedly passed control to his co-conspirators, who issued the false ETF approval post. Investigators found evidence on Council’s personal computer, including searches for “SECGOV hack,” “telegram sim swap,” and “how can I know for sure if I am being investigated by the FBI.”
Council later returned the iPhone used in the scheme to the Apple Store where it was purchased. According to the indictment, the fraudulent post caused significant price volatility before the SEC took corrective aсtion.
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“The FBI works to identify, disrupt, and investigate cyber-enabled frauds, including SIM swapping,” FBI Acting Special Agent in Charge David E. Geist, said. “SIM swapping is a method bad actors exploit to illicitly access sensitive information of an individual or company, with the intent of perpetrating a crime. In this case, the unauthorized actor allegedly utilized SIM swapping to manipulate the global financial market. The FBI will continue to work tirelessly with our law enforcement partners around the country and globe to hold accountable those who break U.S. laws,” he added.
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LAWRENCE
Lawrence is a cryptocurrency journalist covering blockchain developments and digital assets.
