FBI Arrests Eric Council Jr. for SEC Twitter Hack Leading to Bitcoin Surge

• Eric Council Jr. arrested for hacking the SEC’s Twitter with a SIM swap attack.
• A false Bitcoin ETF tweet caused a price surge of over $1,000 before the correction.
• Council faces charges of identity theft and fraud, with further investigations ongoing.

The Federal Bureau of Investigation (FBI) has arrested Eric Council Jr., a 25-year-old from Athens, Alabama, for his involvement in a hacking incident that caused a significant spike in Bitcoin’s value. 

Council is accused of taking control of the United States Securities and Exchange Commission’s (SEC) Twitter account, leading to the spread of false information about Bitcoin ETF approval.

Council, using a SIM swap attack, gained unauthorized access to the SEC’s account on January 9, 2024. The method allowed him to redirect a victim’s phone number to his device, using the credentials to breach the SEC’s Twitter account. 

A false tweet was posted from the SEC Chair’s account, claiming that Bitcoin ETFs had been approved for listing on national securities exchanges.

This misleading announcement caused Bitcoin’s price to surge by over $1,000 before the SEC regained control and corrected the misinformation, leading to a sharp $2,000 price drop.

The indictment reveals that the Council conspired with others to commit the SIM swap fraud. He allegedly used stolen personal identifying information (PII) from an individual obtained through co-conspirators. 

The council utilized this PII to apply for a SIM card associated with the victim’s phone line, which enabled him to do the hack. He completed the SIM swap at a Huntsville, Alabama mobile phone store using a fake ID and subsequently purchased a new iPhone to access the SEC’s Twitter account.

After gaining control, Council provided his accomplices with login access, who posted the fraudulent Bitcoin ETF approval message. In return for his role in the hacking operation, Council received payment in Bitcoin.

Council now faces charges of conspiracy to commit aggravated identity theft and access device fraud. Investigators noted that Council’s online activity raised suspicions, with searches related to FBI investigations suggesting he was aware of the scrutiny. The FBI continues to investigate other individuals involved in the cyberattack.

This incident comes amid increasing concerns over cryptocurrency-related cybercrime. Eric Council’s case highlights the ongoing threat posed by SIM swapping and the financial implications of these cyberattacks.