A 25-year-old Alabama man was arrested by the FBI on suspicion of involvement in the Securities and Exchange Commission’s X account takeover earlier this year. The hack resulted in fraudulent tweets falsely claiming that Bitcoin ETFs had been approved by regulators, causing a temporary spike in Bitcoin prices.
This time, the FBI has identified Eric Council Jr. as one of the people allegedly behind the exploit. Council was charged with aggravated identity theft and conspiracy to commit access device fraud, according to the Department of Justice. The SEC previously acknowledged that the company’s X account was compromised in a SIM swap attack, but the latest indictment reveals new details about how the attack was allegedly carried out. .
The indictment says City Council collaborated with co-conspirators through SMS and encrypted messaging apps. These anonymous individuals allegedly sent him the personal information of a person identified only as “CL” who had access to the SEC X account. According to the Justice Department, the City Council then used that information to print fake identification documents, which they used to purchase new SIMs and new iPhones in their names. He then worked with others to access the SEC’s X account, change its settings, and enable them to send fraudulent tweets, the indictment says.
@SECGov’s tweet came one day before the SEC actually approved 11 spot Bitcoin ETFS, causing Bitcoin prices to briefly soar by more than $1,000. It also raised questions about why high-profile accounts were not protected with multi-factor authentication at the time of the attack. “Today’s arrests demonstrate our commitment to holding accountable the bad actors who have undermined the integrity of our financial markets,” SEC Inspector General Jeffrey said in a statement.
The indictment also notes that Council is suspected of conducting seemingly incriminating searches on his personal computer. His searches include “SECGOV hack,” “Telegram SIM swap,” “How to know for sure if you are being investigated by the FBI,” and “What are the signs that you are being investigated by law enforcement or the FBI?” ” and so on. “If They Never Contact Us”, “What are the Signs that FBL is Following You”, “Verizon Store List”, “Federal Identity Theft Act”, “How Long Does It Take to Delete a Telegram Account Will it take?” the indictment states.
