FBI Arrests Hacker Behind Fake SEC Bitcoin ETF Approval Announcement

A 25-year-old man from Athens, Alabama, has been arrested by the FBI for hacking into the Securities and Exchange Commission’s (SEC) official X account earlier this year in January.

According to an Oct. 17 announcement, the individual, identified as Eric Council Jr., was charged with conspiracy to commit aggravated identity theft and access device fraud.

Authorities allege that Council Jr. participated in a coordinated attack that compromised the SEC’s X account in January 2024. On Jan. 9, the group reportedly posted a fake announcement claiming that the SEC had given approval for the first Bitcoin exchange-traded funds (ETFs) in the U.S.

The false announcement caused a sudden spike in Bitcoin’s price, surging by more than $1,000 in a short period, leading to significant market disturbances.

About 15 minutes after the post went live, SEC Chair Gary Gensler refuted the announcement, stating that the commission had “not approved the listing and trading of spot bitcoin exchange-traded products” and confirming that the account had been hacked.

The hackers gained control of the SEC’s account by using a “SIM swap” technique—where a cybercriminal transfers a victim’s phone number to their own SIM card to bypass two-factor authentication, gaining access to the target’s accounts.

“These SIM swapping schemes are designed to deceive service providers into handing over control of victims’ phone numbers, which can lead to significant financial harm and the exposure of sensitive personal information,” said U.S. Attorney Matthew Graves. He added, “In this case, the conspirators allegedly used that access to manipulate the financial markets. We will hold those accountable who engage in these crimes.”

The indictment reveals that Council Jr., using aliases like “Ronin,” “Easymunny,” and “AGiantSchnauzer,” obtained personal details from his accomplices, along with a template for creating fake identification. He then produced a counterfeit ID using his own card printer and used it to obtain a SIM card linked to the victim’s phone number at a cellular provider store in Huntsville, Alabama.

Council Jr. purchased an iPhone with cash, then used the phone and SIM card to obtain access codes for the SEC’s X account. He passed the codes to his co-conspirators, who used them to post the fraudulent message about Bitcoin ETFs. In return for his part, Council Jr. received payment in Bitcoin. Shortly after the scam, he traveled to Birmingham to return the iPhone for cash.

An FBI investigation later revealed that Council Jr. conducted internet searches for terms like “SECGOV hack,” “Telegram sim swap,” “how can I know for sure if I am being investigated by the FBI,” and “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”

Council Jr. is accused of gaining unauthorized access to the SEC’s X account by stealing the identity of an authorized individual to take control of their phone number. Principal Deputy Assistant Attorney General Nicole M. Argentieri commented, “Council Jr.’s co-conspirators allegedly exploited this unauthorized access to falsely claim the SEC had approved Bitcoin ETFs, causing Bitcoin’s price to surge by $1,000 before dropping by $2,000. This indictment reflects the Criminal Division’s dedication to combating cybercrimes, particularly when they undermine financial markets.”

Just one day after the incident, the SEC officially approved the introduction of 11 Bitcoin ETFs on Wall Street, which now collectively manage over $63.5 billion in assets.

For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble

What is your opinion on this particular topic?  Leave us your comment below!  We are always interested in your opinion!