Eric Council Jr faces up to five years in federal prison for his actions
A 25-year-old man from Alabama, Eric Council Jr., was arrested for allegedly hacking into the US Securities and Exchange Commission’s (SEC) X account in January, where he falsely promoted Bitcoin. According to the US Department of Justice, Council used the compromised account to spread fake news about the SEC approving Bitcoin exchange-traded funds (ETFs), leading to a temporary surge in Bitcoin’s value.
The incident took place on January 9, one day before the SEC’s highly anticipated decision on Bitcoin ETFs. Hackers posted a misleading message from the SEC’s official X account, claiming the approval had already occurred.
This false information caused a sudden spike in Bitcoin’s price, with the cryptocurrency rising by $1,000 as investors scrambled to buy. However, SEC Chair Gary Gensler quickly debunked the post, clarifying that it was unauthorized, leading to Bitcoin dropping by $2,000 once the correction was made.
Council, who also went by online aliases such as “Ronin” and “AGiantSchnauzer,” is charged with conspiracy to commit identity theft and fraud. Investigators revealed that Council and his accomplices used a technique called “SIM swapping” to take control of the SEC account. This method involves tricking mobile carriers into transferring a phone number to a SIM card controlled by the attacker, allowing them to bypass security measures like two-factor authentication.
The investigation also uncovered that Council received payment in Bitcoin for his role in the hack. He even searched terms like “SECGOV hack” and “how to know if the FBI is investigating you” on his personal computer. If convicted, Council faces up to five years in prison for his involvement in the scheme.
