In a significant development, Eric Council Jr., a 25-year-old man from Alabama, has pleaded guilty to hacking the U.S. Securities and Exchange Commission’s (SEC) X account and falsely announcing the approval of Bitcoin exchange-traded funds (ETFs). The fraudulent post caused a brief surge in Bitcoin’s price, prompting quick action from the SEC.
Hack Details: False Bitcoin ETF Announcement
Council admitted to his role in a cyberattack that led to the unauthorized announcement on January 9, 2024, stating that the SEC had approved spot Bitcoin ETFs. This news sent Bitcoin’s price soaring temporarily, before the SEC clarified that the post was false and immediately removed it.
Interestingly, the SEC officially approved spot Bitcoin ETFs just a day after the hack, which added to the confusion and raised questions about the timing.
How the Hack Was Executed
The attack was carried out using a SIM swap scam, where Council and his co-conspirators deceived a local phone store employee into assisting with the attack. By swapping SIM cards, they were able to access the victim’s phone and ultimately gain control of the SEC’s X account, bypassing security measures in the process. Once they had control, the group posted the fraudulent announcement about the Bitcoin ETFs.
The post caused a price jump in Bitcoin of over $1,000, until the SEC debunked it as unauthorized.
Financial Forfeiture and Plea Agreement
As part of his guilty plea, Council has agreed to forfeit $50,000, which prosecutors claim he earned from the illegal scheme. The court has yet to approve the forfeiture order, filed on February 9.
Council was arrested by the FBI in October 2024 and initially pleaded not guilty. However, he later changed his plea to guilty in an agreement with prosecutors. Despite his guilty plea, his sentencing is set for May 16, 2025. Council faces a mandatory minimum sentence of two years in prison for his involvement in the hack.
Final Thoughts
This case highlights the vulnerability of high-profile online platforms and the significant financial impacts of cybercrimes. While the SEC quickly corrected the false announcement, the incident underscores the need for enhanced security measures in safeguarding critical accounts.
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