Alabama Man Charged in SEC Account Hijack and Bitcoin Market Manipulation

The FBI has arrested a 25-year-old man from Alabama for his alleged involvement in the unauthorized takeover of the U.S. Securities and Exchange Commission (SEC) X account in January 2024.

Suspect’s Alleged Scheme to Manipulate Bitcoin Prices

Eric Council Jr. is accused of disseminating a fraudulent tweet posing as the SEC Chair, which led to a sharp $1,000 increase in the value of bitcoin (BTC).

Details of the SIM Swap Fraud

According to the indictment, Council and his cohorts conspired to execute a deceptive SIM Swap attack. This complex scam involved sharing the victim’s personal identifying information (PII), fabricating an ID document in the victim’s name, taking over the victim’s mobile account, and accessing the victim’s social media accounts linked to the phone line to post fraudulent statements under the guise of the SEC Chairman.

Post-Fraud Actions and Investigation

Following the hack, Council is believed to have searched for indications of FBI pursuit and instructions for deleting Telegram accounts, the indictment alleges.

The indictment further elaborates on Council’s actions on the day of the incident. He purportedly went to an AT&T store in Huntsville, Alabama, claiming to be an FBI employee who needed a new SIM card. With the newly obtained SIM card, he proceeded to an Apple Store to buy an iPhone, which he used to receive the two-factor security reset code for the SEC’s X account.

Charges Against Eric Council Jr.

The U.S. government has charged Council with conspiracy to commit aggravated identity theft and access device fraud. The arrest and the charges were announced by U.S. Attorney Matthew M. Graves, Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting Special Agent in Charge of the FBI’s Washington Field Office’s Criminal and Cyber Division David Geist, and SEC Inspector General Deborah Jeffrey.

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