25 Year Old Arrested for Hacking SEC Account and Making Bitcoin Prices Jump 1000 Dollars

A 25-year-old from Alabama, Eric Council Jr., has been arrested for hacking the U.S. Securities and Exchange Commission’s (SEC) X account in January. His actions caused Bitcoin's value to jump by $1,000 in just minutes. The Department of Justice announced the arrest, pointing to growing concerns about online security and market manipulation.

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How the Hack Happened

The hack took place on January 9, just a day before the SEC was supposed to make a big announcement about Bitcoin exchange-traded funds (ETFs). Using the SEC’s X account, Council and his group posted false information claiming that the SEC had approved Bitcoin ETFs. This caused investors to buy Bitcoin, pushing the price up by $1,000.

Soon after, SEC Chair Gary Gensler stepped in and tweeted from his personal account, saying the post was fake and not authorized. He confirmed that the SEC had not approved any Bitcoin ETFs. Despite the false post being deleted within 25 minutes, the market had already reacted. After the truth came out, Bitcoin’s price dropped by $2,000.

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The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products. — Gary Gensler (@GaryGensler) January 9, 2024

What the Hacker is Charged With

Eric Council, who also goes by the names "Ronin" and "AGiantSchnauzer" online, is now facing charges of identity theft and fraud. Federal prosecutors say he tried to manipulate Bitcoin’s price to make money. These charges were announced by U.S. Attorney Matthew M. Graves along with other officials who worked on the case.

The hack was reportedly carried out using a "SIM swap" technique, where hackers trick a phone company into transferring someone’s phone number to their own SIM card. This allowed them to bypass security measures, like two-factor authentication, and gain access to the SEC’s account.

What is a SIM Swap Attack?

A SIM swap is when a hacker convinces a mobile phone provider to switch a phone number from the real user's SIM card to a new SIM card controlled by the hacker. Once they have control of the number, they can access accounts linked to that phone number, such as social media or banking accounts. In this case, Council and his group used the SEC’s X account to post false information about Bitcoin.

During the investigation, federal agents found evidence on Council’s personal computer, including searches like “SECGOV hack,” “identity theft laws,” and “how to know if the FBI is investigating me.”

Council Received Bitcoin as Payment

According to authorities, Council was paid in Bitcoin for carrying out the hack. Investigators followed his online activity and uncovered that he had been paid to pull off the SIM swap. FBI Acting Special Agent in Charge Geist said the case shows how cybercriminals can use these methods to manipulate markets.

He added, “The FBI will continue working with law enforcement partners across the country and the world to hold people accountable for breaking U.S. laws.”

What Happens Next

If convicted, Council could face up to five years in prison. This case highlights the importance of securing social media accounts, especially for organizations like the SEC, where a single post can influence the market.

This incident has sparked discussions about the need for stronger digital security measures. With the rise of cryptocurrencies and other digital assets, experts are urging businesses and government agencies to tighten their security to prevent similar attacks in the future.

The story of Eric Council serves as a reminder of how quickly things can spiral out of control when hackers get access to sensitive information. It also shows the serious consequences that come with these kinds of cybercrimes, not just for the hackers but for the financial markets as well.

Also Read: Russia and China Team Up with Cybercriminals to Target U.S. - Microsoft Report