Cybercriminal Arrested in Connection with SEC X Account Hack That Manipulated Bitcoin Market

by do son · October 18, 2024

The U.S. Department of Justice announced the arrest of Eric Council Jr., a 25-year-old from Athens, Alabama, for his alleged role in a cyberattack that rocked the cryptocurrency market earlier this year. Council is accused of orchestrating a “SIM swap” attack to gain control of the Securities and Exchange Commission’s (SEC) official X account (formerly Twitter) and posting a false message that sent Bitcoin prices soaring.

According to the indictment, on January 9, 2024, Council and his co-conspirators hijacked the @SECGov X account and published a fraudulent tweet declaring the SEC’s approval of Bitcoin Exchange-Traded Funds (ETFs). This misleading announcement triggered a frenzy in the crypto market, causing the price of Bitcoin to surge by over $1,000.

“Immediately after the tweet, the price of BTC increased by more than $1,000 per bitcoin,” the Department of Justice stated in its press release. However, the SEC quickly regained control of its account and exposed the fraudulent post, leading to a sharp decline in Bitcoin’s value, plummeting by more than $2,000.

This incident highlights the growing threat of SIM swapping, a technique where fraudsters manipulate mobile carriers to reassign a victim’s phone number to a SIM card under their control. This allows them to bypass multi-factor authentication and gain access to sensitive accounts, as was the case with the SEC’s X account.

U.S. Attorney Matthew M. Graves emphasized the severity of these schemes, stating, “These SIM swapping schemes… 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 indictment details how Council, using online aliases like “Ronin” and “Easymunny,” allegedly used a fake ID to obtain a SIM card linked to the SEC account and ultimately gain access to post the fraudulent tweet. He then reportedly received Bitcoin as payment for his role in the scheme.

Principal Deputy Assistant Attorney General Nicole M. Argentieri highlighted the broader implications of this case, stating that it “underscores the Criminal Division’s commitment to countering cybercrime, especially when it threatens the integrity of financial markets.”

Council is charged with conspiracy to commit aggravated identity theft and access device fraud. If convicted, he could face significant penalties.