In a significant development, an Alabama resident was taken into custody on Thursday morning following allegations of cyber intrusion into the U.S. Securities and Exchange Commission’s (SEC) social media presence. According to prosecutors, the individual managed to exploit the SEC’s account to disseminate a misleading announcement regarding the approval of spot Bitcoin exchange-traded funds (ETFs), an act that temporarily influenced Bitcoin’s market value.
How the SEC’s X Account Was Compromised via SIM Swapping
On the morning of Thursday, the Federal Bureau of Investigation (FBI) revealed the arrest and subsequent charges against a man accused of unlawfully commandeering the SEC’s Twitter (X) account. The alleged incident occurred in January, when the perpetrator utilized the account to falsely proclaim that the agency had sanctioned Bitcoin ETFs. This misinformation led to a notable surge in Bitcoin’s market price.
The individual at the center of this scandal is Eric Council Jr., a 25-year-old resident of Athens, Alabama. He was apprehended on Thursday amid allegations that he employed a deceptive “SIM swapping” strategy. This method involved taking control of a phone number to gain unauthorized entry into the SEC’s Twitter account. The fake announcement saw Bitcoin’s value increase by over $1,000 initially, only to plummet by $2,000 once the truth came to light.
U.S. Attorney Matthew Graves commented on the seriousness of the crime, stating, “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. 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.”
The Execution of the Cybercrime Plan
The detailed indictment sheds light on the intricate steps taken by Eric Council, who operated under various online aliases such as “Ronin,” “Easymunny,” and “AGiantSchnauzer.” In collaboration with several accomplices, Council allegedly acquired personal identifying information (PII) from a targeted individual. This included obtaining an identification card template with the victim’s name and photograph, which he then used to fabricate a counterfeit ID using his identification card printer.
Subsequently, Council reportedly visited a cell phone provider store located in Huntsville, Alabama. Armed with the fake ID, he procured a SIM card linked to the victim’s phone line. This enabled him to purchase a new iPhone using cash and subsequently obtain access codes for the @SECGov X account.
These access codes were relayed to his co-conspirators, who then logged into the account and issued a fraudulent tweet under the guise of the SEC Chairman. The tweet falsely declared the approval of Bitcoin ETFs, further exacerbating the market turmoil.
In return for his role in the SIM swapping scheme, Eric received compensation in the form of Bitcoin. Following the execution of the plan, he traveled to Birmingham, Alabama, where he returned the iPhone utilized in the operation in exchange for cash. Throughout the investigation, authorities uncovered evidence of internet searches conducted by Council, including inquiries about potential FBI investigations and the indications of such probes.
