The Federal Bureau of Investigation (FBI) arrested a 25-year-old man from Athens, Alabama, in connection with a January hack of the U.S. Securities and Exchange Commission’s (SEC) official X account (formerly Twitter).
According to a statement released on October 17, Eric Council Jr. was arrested on suspicion of conspiring to commit access device fraud and aggravated identity theft.
Eric Council Jr. is accused of being part of a group that hacked the SEC’s X account in January 2024, posting a fraudulent message claiming the SEC had approved the first Bitcoin exchange-traded funds (ETFs). This false announcement caused Bitcoin’s price to spike by over $1,000, resulting in significant market disruption.
SEC Chair Gary Gensler refuted the report almost fifteen minutes later, saying the regulator’s account had been compromised and that the commission had “not approved the listing and trading of spot bitcoin exchange-traded products.”
Using a “SIM swap” attack, the group tricked a mobile service provider into transferring a victim’s phone number to the Council’s SIM card. This allowed them to bypass security measures and issue the false tweet.
U.S. Attorney Matthew Graves highlighted the dangers of SIM swapping schemes, where fraudsters gain control of victims’ phones, leading to significant financial losses and breaches of personal information.
He emphasized, “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 reportedly used online aliases, including “Ronin”, “Easymunny,” and “AGiantSchnauzer,” and created a fake identification card using personal information obtained from co-conspirators.
He acquired a new iPhone and a SIM card linked to the victim’s phone line, which enabled him to access the SEC’s account and share the access codes with his accomplices. In exchange for his role in the operation, the Council received payment in Bitcoin.
As part of the FBI investigation, Eric Council Jr. reportedly searched for information on the SEC hack, SIM swapping, and signs of being under FBI investigation.
Authorities allege that he unlawfully accessed the SEC’s X account by using the stolen identity of an authorized individual to take control of their phone number. This access enabled him and his co-conspirators to post a fraudulent announcement that misled the public regarding the approval of Bitcoin ETFs.
The investigation was conducted by multiple agencies, including the FBI’s Washington Field Office and the SEC’s Office of Inspector General.
Following the fraudulent tweet, the SEC approved 11 Bitcoin ETFs the day after the incident, with these funds now managing over $63.5 billion in assets. Council is expected to make his initial court appearance in the Northern District of Alabama today.
