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Arrest Made in SEC Social Media Hack and Fake Spot Bitcoin ETF Post
- A 25-year-old Alabama man has been charged with conspiracy to commit aggravated identity theft following the January 9th hack of the SEC’s Twitter account.
- The compromise, which occurred just prior to the official approval of spot Bitcoin ETFs, led to a fake post greenlighting the trading of these assets.
- The fake tweet resulted in Bitcoin’s price soaring US $1,000+ in a matter of hours.
- The man was probed and eventually arrested by the FBI following months of investigations.
Spot Bitcoin ETFs have been in action for the best part of a year, so it’s easy to forget the hype surrounding their potential approval in late 2023. Crypto social media was ablaze with speculation, as commentators spat out percentage likelihoods and “insider info” from Gary Gensler’s dog’s uncle’s groomer.
But perhaps the greatest representation of the pre-ETF hysteria was the somewhat hilarious events of January 9th.
Just a couple of days before the SEC officially approved spot Bitcoin ETFs for trading in the US, their Twitter account was hacked. In one of the sector’s greatest pranks, a man gained access to the official SEC socials and “announced” that Bitcoin ETFs were given the green light.
Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.
Fake tweet by SEC hacker, Eric Council Jr
The market went into a frenzy. Bitcoin’s price climbed more than AU $1,500 before the SEC could wrangle back control of their account and confirm the tweet was fake.
And after months of investigation, the man behind the hilarious devastating attack has been apprehended by the FBI.
Related: Crypto ETFs See Record Trading, Total Bitcoin Held Exceeds $60 Billion
SIM Swap Scam Allowed Hacker Access to SEC 2FA Codes
According to the FBI, the Alabaman man behind the SEC Twitter compromise was Eric Council Jr., who was arrested and taken into custody yesterday. The 25-year-old pulled off a “SIM swapping” scheme, where the hacker gains access to someone else’s text messages and creates a fake ID through relevant text messages.
From there, it was as simple as entering 2FA access codes to the SEC’s Twitter account via a linked phone number.
While the outcome of this SIM swap was relatively harmless, the practice is actually quite a serious one, according to US Attorney Matthew Graves.
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.
Matthew Graves, US Attorney Perpetrator Charged With Aggravated Identity Theft
It seems that from the moment Eric Council completed his hack and posted the tweet, he knew he was in some strife.
Thanks to a search of his personal computer and internet browser, the FBI uncovered some of his search history within days of the compromise.
My personal favourite were the following searches: “How can I know for sure if I am being investigated by the FBI” and “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”
Well, at least he probably knows the answers to those queries now.
Eric Council Jr. has been charged with conspiracy to commit aggravated identity theft and access device fraud.
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Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
