Evergreen Reporter

Eric Council Jr., a 25-year-old resident of Athens, Alabama, was arrested in connection with the unauthorized takeover of the U.S. Securities and Exchange Commission's (SEC) X account in January 2024. The breach led to a fake message from the SEC Chair that caused Bitcoin's value to spike by $1,000. The arrest and indictment were announced by U.S. Attorney Matthew M. Graves and other officials.

The indictment reveals that on January 9, 2024, Council conspired with others to take control of the @SECGov X account through a "SIM swap." This allowed them to post a false announcement about Bitcoin ETFs being approved by the SEC, which affected Bitcoin's price significantly.

"These SIM swapping schemes... can result in devastating financial losses," stated U.S. Attorney Graves. Principal Deputy Assistant Attorney General Nicole M. Argentieri added that Council accessed the SEC’s account using stolen identity information to manipulate financial markets.

FBI Acting Special Agent David Geist emphasized the role of SIM swapping in this case: "The FBI works to identify, disrupt, and investigate cyber-enabled frauds." SEC Inspector General Deborah Jeffrey reiterated their commitment to holding accountable those undermining financial market integrity.

Council allegedly used various online monikers and received personal identifying information from co-conspirators to create a fake ID for obtaining access codes linked to the victim’s phone line. He then facilitated unauthorized access to issue fraudulent tweets on behalf of the SEC Chairman.

The investigation involved multiple agencies including the FBI Washington Field Office Criminal and Cyber Division and significant assistance from other law enforcement bodies.

Prosecution is managed by Assistant United States Attorney Kevin Rosenberg alongside DOJ Trial Attorneys Ashley Pungello, Paul Zebb, and Lauren Archer. Assistance was also provided by Assistant United States Attorney John Hundscheid from Alabama's Northern District.

An indictment remains an allegation until proven guilty beyond reasonable doubt in court.