Key Takeaways
- 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.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
