The U.S. Securities and Exchange Commission’s X (formerly Twitter) account was hacked by an Alabama man, leading to the posting of false information about Bitcoin. This incident caused a temporary surge in the cryptocurrency’s price, increasing it by $1,000. The FBI has since taken the individual into custody.
According to the U.S. Attorney’s Office for the District of Columbia, Eric Council Jr. was provided with personal identifying information and an ID template by his co-conspirators. With these materials, he was able to create a fake ID card for an individual who had access to the SEC’s X account. Council then allegedly used this fraudulent ID card at a cell phone store in Huntsville, Alabama, where he obtained an iPhone along with a SIM card that was connected to the victim’s phone number.
Council is said to have utilized a spoofed phone to aid his co-conspirators in accessing the SEC’s X account. From there, they proceeded to publish a false tweet declaring the SEC’s approval of #Bitcoin ETFs for listing on all registered national securities exchanges. As compensation for his assistance, Council allegedly received payment in the form of Bitcoin.
According to the U.S. Attorney’s Office, the 25-year-old’s behavior following the attack indicates that he was far from being a criminal mastermind. Council reportedly engaged in a string of questionable online searches, including phrases like “SECGOV hack,” “telegram swap,” “how can I know for sure if I am being investigated by the FBI,” and “What are the signs you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”
The value of Bitcoin experienced a temporary surge following the January 9 hack. However, SEC Chairman Gary Gensler promptly took to his own account to clarify that the information was false. As a result, the price of Bitcoin plummeted by $2,000.
The next day, the SEC formally approved 11 Bitcoin ETFs, but fumbled the announcement by posting and then removing a document detailing the approval from its website, raising concerns about whether it was fake news.
On Thursday, the U.S. District Court for the Northern District of Alabama will arraign Council on charges of conspiracy to commit aggravated identity theft and access device fraud.
“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,” U.S. Attorney Matthew Graves said in a statement. “Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets. Through indictments like this, we will hold accountable those who commit these serious crimes.”
