FBI Apprehends Hacker Responsible for Fabricating SECs Bitcoin ETF Approval

A man from Athens, Alabama, aged 25, has been apprehended by the Federal Bureau of Investigation (FBI) in the United States for hacking into the official X account of the Securities and Exchange Commission (SEC) in January. Eric Council Jr. was taken into custody on charges of conspiring to commit aggravated identity theft and access device fraud, as stated in an announcement on October 17. According to federal authorities, Council Jr. is alleged to have been part of a group that hacked the SEC’s X account in January 2024 and subsequently posted a false message on January 9, claiming that the SEC had approved the first Bitcoin exchange-traded funds (ETFs) in the United States. Following this fabricated announcement, the price of Bitcoin (BTC) surged by over $1,000, causing significant disruptions in the markets. Approximately 15 minutes later, SEC Chair Gary Gensler refuted the news, stating that the commission had not approved the listing and trading of spot bitcoin exchange-traded products, and revealing that the regulator’s account had been compromised. The hacker gained control of the SEC account using a “SIM swap” attack, which involves taking control of a victim’s phone number by transferring it to the hacker’s own SIM card in order to bypass two-factor authentication and gain access to the victim’s accounts. US Attorney Matthew Graves described these SIM swapping schemes as potentially leading to severe financial losses for victims, as well as exposing sensitive personal and private information. The indictment reveals that Council Jr., who used various online aliases such as “Ronin,” “Easymunny,” and “AGiantSchnauzer,” obtained personal information and an ID template from his co-conspirators. With this information, he created a fake ID using his own card printer and used it to acquire a SIM card connected to the victim’s phone at a cell provider store in Huntsville, Alabama. Council Jr. then purchased an iPhone with cash, using the phone and SIM card to retrieve access codes for the SEC’s X account. He passed these codes to his co-conspirators, who used them to post a fraudulent message about the ETFs’ approval. In exchange for his involvement, Council Jr. received payment in Bitcoin and subsequently returned the iPhone for cash in Birmingham. The hacker later conducted internet searches related to the SEC hack, SIM swapping on Telegram, and signs of being investigated by the FBI or law enforcement, according to the FBI investigation. Council Jr. is accused of unlawfully gaining access to the SEC’s X account by using the stolen identity of an authorized individual to take control of their phone number. Principal Deputy Assistant Attorney General Nicole M. Argentieri made this statement. Just a day after the incident, the SEC approved the launch of 11 Bitcoin ETFs on Wall Street. These funds currently have a combined total of over $63.5 billion in assets under management. This is an ongoing story, and additional information will be provided as it becomes available.