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Alabama Man Arrested in Connection with SEC Social Media Hack
Arrest in Alleged SEC Social Media Account Hack
An individual from Alabama, Eric Council Jr., 25, has been arrested on suspicion of involvement in the hack of a U.S. Securities and Exchange Commission social media account that caused a surge in bitcoin prices. According to the Justice Department, Council is accused of assisting in the unauthorized access to the SEC’s account on X (formerly Twitter).
Impact of the False Announcement
Following the breach, hackers prematurely announced the approval of bitcoin exchange-traded funds, leading to a rapid increase in the price of bitcoin. The misleading post claimed that the SEC had approved the listing of bitcoin ETFs on all registered national securities exchanges.
Method of Breach
Authorities allege that Council engaged in a “SIM swap” scheme by using a fake ID to impersonate an individual with access to the SEC’s X account. By manipulating a cellphone store into providing him with a SIM card linked to the individual’s phone, Council gained control of the phone number and access codes to the SEC’s account, which were then used by the hackers.
Once the initial post was made, SEC Chairman Gary Gensler clarified on his personal account that the SEC had not approved the bitcoin ETFs for trading. This discrepancy caused confusion in the market, resulting in bitcoin’s price fluctuating erratically.
Legal Consequences for Council
Council has been charged in Washington’s federal court with conspiracy to commit aggravated identity theft and access device fraud. His online activities subsequent to the incident raised suspicions, with searches related to potential law enforcement investigations.
Market Fluctuations and Official Approval
Following the false announcement, bitcoin’s price surged before retracting once SEC’s denial was made public. The confusion was resolved the next day when the SEC officially approved the first bitcoin exchange-traded funds.
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