A man accused of hacking the Security Exchange Commission’s X page to post false and misleading information about bitcoin was arrested by federal authorities in Athens on Thursday.
According to the indictment released by the U.S. Attorney’s Office for the District of Columbia, on January 9, 2024, Eric Council Jr., 25, conspired with other individuals to take unauthorized control of the @SECGov X account and sent out a fake post in the name of the SEC Chair, announcing, “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.”
Shortly after the post, the price of BTC increased by more than $1,000 per bitcoin.
The SEC quickly regained control over their account and confirmed that the announcement was both unauthorized and a security breach. Following the corrective announcement, the value of BTC decreased by more than $2,000 per bitcoin.
Principal Deputy Assistant Attorney General Argentieri said Council Jr. hacked the page by “using the stolen identity of a person who had access to the account to take over their cellphone number.”
The @SECGov X account was compromised, and an unauthorized post was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— U.S. Securities and Exchange Commission (@SECGov) January 9, 2024
“The FBI works to identify, disrupt, and investigate cyber-enabled frauds, including SIM swapping,” said FBI Acting Special Agent in Charge Geist. “SIM swapping is a method bad actors exploit to illicitly access sensitive information of an individual or company, with the intent of perpetrating a crime. In this case, the unauthorized actor allegedly utilized SIM swapping to manipulate the global financial market.”
“The FBI will continue to work tirelessly with our law enforcement partners around the country and globe to hold accountable those who break U.S. laws.”
Council made an initial appearance Thursday in the Northern District of Alabama.
According to the U.S. Attorney’s Office, prior to his arrest Council Jr. searched the web for topics including “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 case is being investigated by the FBI Washington Field Office Criminal and Cyber Division, the SEC-Office of Inspector General, the U.S. Attorney’s Office for the District of Columbia, and the Department of Justice’s Market Integrity and Major Frauds Unit (MIMF) and Computer Crime and Intellectual Property Section (CCIPS).
Austen Shipley is a staff writer for Yellowhammer News. You can follow him on X @ShipleyAusten
