Summary:
Eric Council Jr., 25, arrested for hacking the SEC's X account.
The hack caused a $1,000 spike in Bitcoin's value.
Council used a SIM swap attack to gain unauthorized access.
He faces charges of identity theft and access device fraud.
Potential maximum penalty of five years in prison.
SEC Account Hacked by 25-Year-Old
A 25-year-old from Alabama, Eric Council Jr., was arrested for hacking the SEC’s X account in January, which caused a $1,000 spike in Bitcoin's value, as reported by the Justice Department. This incident occurred on January 9, just before the SEC's anticipated approval of spot Bitcoin exchange-traded funds.
The Hack and Its Consequences
The hackers used the compromised account to falsely announce that the SEC had approved the trading of Bitcoin ETFs. SEC Chair Gary Gensler quickly refuted the claim, stating that the SEC had not approved such listings. The phony post was deleted 25 minutes later, but it was enough to prompt investors to rush in, causing Bitcoin's price to rise by $1,000 before correcting and falling by $2,000.
Charges Against Council
Council, known online as “Ronin,” “AGiantSchnauzer,” and @Easymunny, faces charges of aggravated identity theft and access device fraud. The indictment claims he manipulated Bitcoin prices through this hack. The method used was a “SIM swap”, allowing criminals to bypass multi-factor authentication and take control of the account.
The SIM Swap Attack
A SIM swap attack involves fraudulently convincing a carrier to reassign a phone number to a different SIM card controlled by the hacker. Council allegedly impersonated an individual with access to the SEC account by creating a fake ID, enabling him to access the account linked to the victim's phone number.
Payment in Bitcoin
For his involvement in the hack, Council received payment in Bitcoin. During the investigation, it was found that he searched terms like “SECGOV hack” and “federal identity theft statute” on his personal computer.
FBI's Statement
FBI Acting Special Agent in Charge Geist stated that the unauthorized actions of Council manipulated the global financial market. The FBI is committed to bringing those who violate U.S. laws to justice.
Potential Penalties
If convicted, Council faces up to five years in prison for his actions.
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