FBI Arrests Hacker Behind Fake BTC ETF Approval Tweet From SEC Account

• The FBI has arrested a 25-year-old man in connection with the hack of the SEC’s X account.
• Authorities charged Eric Council Jr. with conspiracy to commit identity theft and access device fraud.
• The January hack caused the price of Bitcoin to surge.

In a major breakthrough, federal authorities have arrested a suspect in connection with the notorious hack that compromised the Securities and Exchange Commission’s (SEC) X account in January.

The attack briefly sent Bitcoin (BTC) prices soaring after a fraudulent post falsely claimed the regulator had cleared the way for a spot Bitcoin exchange-traded fund (ETF).

FBI Arrests SEC Account Hacker

The FBI announced the arrest  of Eric Council Jr., a 25-year-old resident of Athens, Alabama, on Thursday, Oct. 17.

According to an FBI press release, Council Jr. is facing charges of conspiracy to commit aggravated identity theft and access device fraud in connection with the breach.

The indictment alleges that Council Jr. accessed the SEC’s X account by using the stolen identity of a person who had access to the account to take over their cellphone number.

This was done as part of a “SIM swap” scheme, where bad actors trick service providers into giving them control of unsuspecting victims’ phones.

How Did Council Jr. Hack the SEC’s Account?

Council Jr. allegedly received personal identifying information and a SIM card linked to the victim’s phone line by presenting a fake ID at a cell phone store.

He then purchased a new iPhone and used the two items to obtain access codes to the SEC’s X account.

Council Jr. shared the codes with his co-conspirators, who then accessed the account and issued a fraudulent post announcing the SEC’s approval of Bitcoin ETFs.

The post caused the price of Bitcoin to rise by $1,000 and then promptly fall by $2,000.

The hack initially raised concerns about X’s security. However, the platform has clarified that the compromise was not a result of any breach within X’s systems.

SEC Inspector General Jeffrey said, “Today’s arrest demonstrates our commitment to holding bad actors accountable for undermining the integrity of the financial markets.”

Additionally, the FBI found that Council Jr. had made internet searches such as “How can I know for sure if I am being investigated by the FBI?” after the successful SIM swap, suggesting that he was aware of the potential consequences of his actions.