SEC Account Hacker and Mastermind Behind Bitcoin Price Surge Arrested
Blockchainmedia - Eric Council Jr., a 25-year-old man from Athens, Alabama, was arrested today in connection with the hack of the SEC account at X that caused the price of Bitcoin to spike by more than $1,000 in January 2024. Council is charged with conspiracy to commit identity theft and unauthorized access to a device.
According to the indictment, on January 9, 2024, he and several others took over the SEC account at X and posted a false statement in the name of SEC Chairman Gary Gensler, claiming that a Bitcoin Spot ETF had been approved for trading on a national stock exchange.
"The conspirators allegedly used their unauthorized access to manipulate the financial markets," District Attorney Graves said in the indictment Thursday (10/17/2024).
The false statement caused the price of Bitcoin to spike, but the price quickly plummeted after the SEC clarified that the announcement was invalid.
The hack was carried out using a technique called a "SIM swap," in which the hackers managed to switch the victim's phone number to a SIM card they controlled. With this access, they were able to bypass layers of security like two-factor authentication that are commonly used to protect important accounts.
"SIM swap attacks allow perpetrators to access sensitive information from individuals or businesses, which is then used to commit crimes," said FBI Agent David Geist.
According to the indictment, Council used stolen identities to hack the SEC accounts. By printing fake IDs using the victim's personal information, he managed to obtain a new SIM card at a phone store in Huntsville, Alabama, that was linked to the victim's phone number.
He then purchased a new iPhone and used the device to hack the SEC accounts. Council then shared the access codes with his co-conspirators, who then published fake tweets announcing the approval of the Bitcoin Spot ETF.
Source: Investing.com