BREAKING: Suspect in hacking of SEC X account arrested in Alabama

According to a press release from the Department of Justice, "Eric Council Jr., 25, of Athens, Alabama, was arrested this morning, in Athens, in connection with a January 2024 unauthorized takeover of the U.S. Securities and Exchange Commission’s (SEC) X account."

On January 9, hackers posted the message “Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges," which led to the price of the ETF BTC to increase by more than $1,000 per Bitcoin. The SEC regained control over the account thereafter and said the "announcement was unauthorized and the result of a security breach." After the SEC made an announcement to correct the post, BTC fell by around $2,000 per Bitcoin.

Council allegedly took control of the account with what is called a "SIM swap."

"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 US Attorney Matthew Graves.

“The indictment alleges that Eric Council, Jr. unlawfully accessed the SEC’s account on X by using the stolen identity of a person who had access to the account to take over their cellphone number,” said Principal Deputy Assistant Attorney General Nicole Argentieri.

“Council, Jr.’s co-conspirators then allegedly used this unauthorized access to the X account to falsely announce that the SEC had approved listing Bitcoin ETFs, which caused the price of Bitcoin to rise by $1,000 and then fall by $2,000. Council’s indictment underscores the Criminal Division’s commitment to countering cybercrime, especially when it threatens the integrity of financial markets," she added in the press release.