Bitrabo Editorial
The US Department of Justice (DOJ) has reported the arrest of Eric Council Jr., an Alabama resident, linked to the high-profile hack of the X account of the US Securities and Exchange Commission (SEC) that occurred in January 2024. This breach led to a false announcement claiming SEC approval for Bitcoin exchange-traded funds (ETFs).
False Bitcoin ETF Claim
The indictment indicates that on January 9, 2024, Council and his accomplices executed an unauthorized intrusion into the SEC’s X account, posting a misleading message stating, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”
This deceptive claim caused a significant spike in Bitcoin’s value, which subsequently fell by over $2,000 after the SEC confirmed the announcement was due to a security breach.
The hackers used a technique called “SIM swapping,” which involves deceiving telecommunications companies into transferring the victim’s phone number to the fraudster’s device.
Details of Council’s Involvement
The investigation revealed that Council used personal identifying information from associates to create a forged ID for a SIM swap at a mobile service provider in Huntsville, Alabama. This allowed him to log into the SEC’s X account and distribute the false tweet.
After the hacking incident, Council received Bitcoin as compensation for the SIM swap. He later drove to Birmingham, Alabama, to sell the iPhone utilized in the crime for cash.
Investigators noted that Council engaged in online searches related to the SEC hack, SIM swap techniques, and possible signs of an FBI inquiry, showing he was aware of the potential legal consequences of his actions.
Council was arrested early Thursday morning and is expected to appear in court in the Northern District of Alabama. He is facing charges of conspiracy to commit aggravated identity theft and access device fraud, as outlined in the indictment released today.
As of this writing, Bitcoin’s price stood at $67,500.
Featured image from DALL-E, chart from TradingView.com