An Alabama resident, Eric Council Jr., was arrested by the FBI in Athens for his alleged involvement in hacking the Securities and Exchange Commission's (SEC) social media account on X, previously known as Twitter. The incident occurred in January when unauthorized control of the SEC’s account led to a false announcement regarding bitcoin Exchange Traded Funds, attributed to SEC Chair Gary Gensler. This misinformation caused bitcoin prices to rise by over $1,000 before plummeting more than $2,000 after the SEC clarified the breach.
Court documents indicate that Council, 25, conspired with others using a Subscriber Identity Module (SIM) swap technique to gain access to the SEC’s X account. A SIM swap involves tricking a cell phone carrier into transferring a phone number from its rightful owner to a criminal actor's SIM card. Council allegedly used fake identification to impersonate a victim and hijacked their cellular account linked to the SEC’s social media profile.
Principal Deputy Assistant Attorney General Nicole M. Argentieri commented on the indictment: “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.” She emphasized that this case highlights efforts against cybercrime threatening financial markets' integrity.
U.S. Attorney Matthew M. Graves for the District of Columbia noted, “These SIM swapping schemes... can result in devastating financial losses.” He stressed accountability for those manipulating financial markets through illegal means.
Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division remarked on public deception through fraudulent statements made under an assumed identity: “The defendant allegedly deceived the public by impersonating the victim and making fraudulent statements on behalf of the SEC.”
David E. Geist from FBI Washington Field Office explained SIM swapping as a method used by bad actors for illicit access: “In this case, the unauthorized actor allegedly utilized SIM swapping to manipulate the global financial market.”
Inspector General Deborah Jeffrey of SEC underscored commitment against undermining market integrity: “This criminal indictment demonstrates our commitment.”
Council faces charges including conspiracy to commit aggravated identity theft and access device fraud; if convicted, he could face up to five years in prison. The investigation is being conducted by FBI Washington Field Office and SEC Office of Inspector General with prosecution led by attorneys Ashley Pungello, Lauren Archer, and Kevin Rosenberg.
Further details about SIM swapping are available at www.ic3.gov/PSA/2024/PSA240411.
It is important to note that an indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond reasonable doubt in court.