Alabama Man Arrested for Hacking SEC’s X Account and Manipulating Bitcoin Price

The Athens, Alabama police have arrested 25-year-old Eric Council for hacking the official account of the U.S. Securities and Exchange Commission (SEC) on the social network X, formerly known as Twitter.

According to the investigation, on January 9, 2024, Council, along with accomplices, hacked the SEC account and posted a fraudulent message. The post, purportedly from the head of the commission, falsely claimed that the regulator had approved the trading of Bitcoin Exchange-Traded Funds (ETFs) on all official U.S. exchanges. Following the publication of the message, the price of Bitcoin instantly surged by $1,000.

SEC employees quickly regained control of the account and reported the breach. Once the false message was refuted, Bitcoin’s price plummeted by $2,000. Notably, at the time, the commission was indeed discussing the possibility of approving Bitcoin ETF trading.

The investigation revealed that the hackers used a SIM card swap to carry out the breach. According to the authorities, Council, operating online under the aliases Ronin, Easymunny, and AGiantSchnauzer, printed a fake ID using a specialized printer. His accomplices had sent him the data and photo of the individual who had access to the SEC account. Armed with the counterfeit ID, Council visited a cellphone store in Huntsville and obtained a new SIM card linked to the victim’s phone number.

After acquiring the SIM card, the fraudster purchased a new iPhone with cash. Using the phone and the swapped SIM, the hacker obtained access codes to the SEC account on X and shared them with his accomplices. Council was paid in Bitcoin for successfully executing the SIM-swapping scheme. After the attack, he returned the iPhone to a store in Birmingham, exchanging it for cash.

Subsequently, Council’s search history revealed incriminating phrases such as “hack SECGOV,” “telegram sim swap,” “how to know if the FBI is investigating me,” and “what are signs you’re under investigation by law enforcement or the FBI, even if they haven’t contacted you.”

Council now faces charges of conspiracy and identity theft fraud. The trial will take place in the Northern District of Alabama.