25-Year-Old Hacker Who Faked SEC Bitcoin ETF News Arrested: FBI Reveals His Search History Includes 'Signs You're Under Investigation'

Hacker Arrested for SEC X Account Hijack

A major breach of the Securities and Exchange Commission’s (SEC) X account occurred in January 2024, with a 25-year-old man from Athens, Alabama, accused of using his hacking skills to manipulate the price of Bitcoin.

The suspect, Eric Council Jr., was arrested on 17 October 2024, charged with conspiracy to commit aggravated identity theft and access device fraud.

How Did the Hack Take Place?

Authorities allege that Council employed a method known as "SIM swapping" to hijack a victim's phone number.

This technique involves tricking mobile service providers into transferring a phone number to a device controlled by the hacker.

In this case, Council reportedly created a fake ID using personal information obtained from an SEC employee, which allowed him to acquire a new SIM card linked to the victim's mobile account.

This manipulation gave him access to the SEC’s X account.

Once he gained access, Council, who used various online aliases such as "Ronin" and "Easymunny," collaborated with unnamed co-conspirators to post a misleading announcement.

They falsely claimed that the SEC had approved Bitcoin exchange-traded funds (ETFs).

This deceptive tweet led to an immediate surge in Bitcoin's value, pushing the price up by more than $1,000.

However, once the SEC disavowed the statement, the price plummeted by $2,000.

The Consequences of Market Manipulation

U.S. Attorney Matthew Graves commented on the severity of such schemes, 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.”

The incident raised serious concerns about the security protocols in place for a high-profile agency like the SEC, especially since the account did not have multifactor authentication enabled.

FBI Investigation and Charges Filed

The SEC and FBI's investigation into the hack revealed the intricate details of how the attack unfolded.

Council allegedly received guidance from co-conspirators who had identified an individual with access to the SEC's account, referred to only as "C.L."

Following their instructions, Council drove approximately 35 miles to Huntsville, Alabama, armed with the fake ID he had created.

He visited an AT&T store, posing as an “FBI agent who broke his phone and needed a new SIM card,” successfully obtaining the replacement.

After taking control of C.L.’s phone number, Council shared the access codes with his accomplices, who then posted the fraudulent announcement on the SEC’s account.

Following the hack, Council received Bitcoin payments for his role in the SIM swap and later returned the stolen phone.

Aftermath and Reactions from the SEC

The fallout from this incident prompted criticism from Congress and identity theft experts, who expressed disbelief that such a critical regulatory body could be compromised so easily.

The SEC acknowledged the FBI’s efforts, stating,

"The SEC thanks law enforcement for their vigilance in seeking accountability for the breach of the SEC's X account."

In the wake of the breach, the SEC confirmed that its internal investigation revealed the absence of multifactor authentication on its X account, which could have potentially prevented the hack.

Experts have noted that while many federal agencies recommend or even require such security measures, there are no binding regulations enforcing these protocols across the board.

The Charges Against Eric Council Jr.

Eric Council Jr. now faces serious legal repercussions for his actions.

The charges of conspiracy to commit aggravated identity theft and access device fraud highlight the lengths to which individuals may go to exploit financial markets.

Following the incident, Council reportedly conducted online searches related to his potential investigation, including phrases such as "SECGOV hack," "telegram sim swap," and “What are the signs that you are under investigation by law enforcement or the FBI?”

As the case unfolds, it raises broader questions about cybersecurity protocols in government agencies, particularly as social media continues to play a significant role in communication and market influences.