- Eric Council Jr. pleaded guilty to hacking the SEC’s X (formerly Twitter) account.
- The unauthorized post led to a $1,000 Bitcoin price surge before SEC regained control.
- Council faces up to five years in prison, with sentencing set for May 16.
Eric Council Jr., from Athens, Alabama, has owned up to his role in hacking the U.S. Securities and Exchange Commission’s social media account on X (formerly Twitter).
This cyberattack resulted in a fake post claiming the SEC had approved Bitcoin Exchange Traded Funds (ETFs), briefly sending Bitcoin prices skyward, jumping over $1,000 per token.
Elaborate Hack for Bitcoin Payday
Back in January 2024, the 25-year-old masterminded an elaborate attack with partners to target the SEC’s official X account. Council took advantage of the ETF excitement to announce the approval of the Bitcoin ETF, a much-awaited regulatory step.
While the fake post caused a quick spike in Bitcoin prices, the SEC acted fast to regain control of the account, set the record straight on the fraudulent announcement, and confirmed it was a hack. Even with the clarification, the market reacted hard, with Bitcoin prices plunging by $2,000 per token.
Related: Metaplanet’s Stock is Up 3,600% Thanks to Bitcoin
SIM Swap Scheme Detailed in Court
Court documents further lay out that Council used a SIM swap scheme to pull off the attack. He illegally moved a victim’s phone number to a device he controlled. Council then faked ID cards using stolen personally identifiable information to successfully pretend to be the victim and illegally get into the SEC’s X account.
His accomplices then fired off the bogus ETF announcement. For his part, Council got paid in Bitcoin.
FBI and SEC Vow Continued Cybercrime Fight
Federal officials, including agents from the FBI and the SEC, announced the guilty plea, making it clear they are still dedicated to prosecuting cybercrime. Council is scheduled for sentencing on May 16 and could face up to five years in prison.
Related: Radiant Capital Hit by $50M Cyberattack: North Korea Group Linked
Beyond the SEC Hack: Evolving Online Scams
Scammers often jump on trending trends or events to trick victims using SIM swap schemes. More recently, these criminals have started using famous names like Elon Musk to push fake giveaways and investment scams.
The pattern is obvious: whatever’s hot becomes a weapon for these fraudsters. This really highlights how important it is to protect personal accounts to avoid getting caught out by these changing tricks. Authorities in Council’s case are still digging into the case, showing they are keeping a close eye on cyber threats targeting financial systems.
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