Alabama Man Arrested for Role in SEC Social Media Hack That Spiked Bitcoin Prices

On Thursday, FBI agents arrested Eric Council Jr., a 25-year-old resident of Athens, Alabama, in connection with the January 9th hack of the Securities and Exchange Commission’s (SEC) X account, which briefly drove up the price of Bitcoin by over $1,000, according to the Department of Justice (DOJ).

Council, accused of carrying out a SIM swap attack, allegedly manipulated a phone number linked to the SEC's X account, gaining access and sharing the account’s credentials with his co-conspirators. These individuals then posted a fake tweet, falsely claiming that the SEC had approved Bitcoin exchange-traded funds (ETFs) for listing on national exchanges. This deceptive announcement caused Bitcoin's price to surge, only to plunge by over $2,000 once the SEC regained control and clarified the tweet was fraudulent.

The hack came at a pivotal moment when the SEC was actively reviewing rules regarding Bitcoin ETFs. The next day, the agency approved changes that paved the way for the launch of these financial products in the U.S.

Using the aliases "Ronin," "Easymunny," and "AGiantSchnauzer," Council was allegedly paid in Bitcoin for his role in the attack. The DOJ further revealed that after the hack, Council made several concerning internet searches, including inquiries about FBI investigations and Telegram SIM swaps.

Following his arrest, Council was denied bail and appeared in U.S. District Court in Huntsville, Alabama, where he faced charges of conspiracy to commit aggravated identity theft and access device fraud. A detention hearing is scheduled for Tuesday, with his case being prosecuted in Washington, D.C., the location of his indictment.

This incident underscores the growing concerns around cybersecurity threats targeting financial regulators and their impact on cryptocurrency markets.