The Federal Bureau of Investigations (FBI) announced Thursday that it has arrested a man and charged him over hijacking the Twitter (aka X) account of the Securities and Exchange Commission (SEC), using the account to tweet prematurely in January that the agency had approved Bitcoin ETFs. That false statement immediately led to a spike in the price of Bitcoin.
Eric Council Jr. of Athens, Alabama was arrested Thursday and charged with the crime, with authorities alleging that the 25-year-old used a "SIM swapping" technique to take over a phone number and ultimately gain unauthorized access to the SEC's Twitter account. The price of Bitcoin shot up by more than $1,000 soon thereafter, but then plunged by $2,000 once the announcement was refuted.
"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,” said U.S. Attorney Matthew Graves, in a statement. “Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets. Through indictments like this, we will hold accountable those who commit these serious crimes."
Council, who also went by “Ronin,” “AGiantSchnauzer,” and “Easymunny,” allegedly used stolen personal info from an SEC employee to craft a fake ID. Council then drove 35 miles east of Athens to Huntsville, Alabama, to use the fake ID to purchase a new SIM card tied to the victim’s mobile account.
The FBI did not, however, say how the SEC’s employee’s information came into Council’s possession. Armed with the SIM and a new iPhone, he accessed the SEC’s Twitter account and shared the login details with his co-conspirators.
“Council shared those codes with members of the conspiracy, who then accessed the account—and issued the fraudulent tweet on the @SECGov X account in the name of the SEC Chairman, falsely announcing the SEC’s approval of BTC ETFs,” the FBI said.
Apparently looking to throw law enforcement off his trail, Council allegedly drove 100 miles south of Athens to Birmingham, Alabama, to return the iPhone used in the hack.
After the January 9 tweet, Bitcoin shot as high as $47,680 before plunging to $45,627, according to data from CoinGecko.
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
Realizing the potential consequences of his actions, the FBI said Council began searching the web with queries like, “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.”
Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law, the FBI noted. However, searching online for tips on how to tell if the FBI is investigating you probably won’t help his case.
If found guilty, Council faces a maximum of 15 years in federal prison for identity theft alone and three years in prison for impersonating a federal agency.
“Today’s arrest demonstrates our commitment to holding bad actors accountable for undermining the integrity of the financial markets,” SEC Inspector General Deborah Jeffrey said in a statement.
The SEC did ultimately announce the approval of Bitcoin ETFs for trading, of course—one day later, on January 10.
Edited by Andrew Hayward
Editor's note: This story was updated after publication with additional details.