The FBI has detained Eric Council Jr., a 25-year-old resident of Athens, Alabama, in connection with a significant breach involving the Securities and Exchange Commission (SEC). The FBI arrested Eric Council Jr. on October 17 on charges of conspiracy to conduct aggravated identity theft and access device fraud.
Council Jr. reportedly participated in a plot whereby X hacked the official social media account of the SEC in January 2024. On January 9, the hackers falsely announced that the SEC in the United States had approved the first Bitcoin exchange-traded funds (ETFs). This misleading information caused Bitcoin’s price to rise rapidly; it shot by more than $1,000 before the SEC swiftly refuted the allegations barely 15 minutes later. SEC Chair Gary Gensler clarified that the agency had not approved the trading of spot Bitcoin ETFs, while also revealing a hack into their account.
The illegal access to the SEC’s account was caused by a “SIM swap” assault. By convincing service providers to migrate a victim’s phone number to their SIM card, this method lets hackers take over. Such strategies have the potential to expose private data and cause significant financial damage. Emphasizing that these crimes undermine financial markets, U.S. Attorney Matthew Graves noted their grave consequences.
The indictment claims Council Jr. used multiple online identities, including “Ronin” and “AGiantSchnauzer.” Working with others, he sought personal information from victims, then used it to build a false identity. Using this bogus identity, he purchased a SIM card from a Huntsville, Alabama, retailer. Having paid cash for a new iPhone, he used the phone and SIM card to get access credentials for the SEC’s account. Then he gave his friends these codes, which they used to post the fake notification in lieu of Bitcoin payment. Council Jr. exchanged the iPhone for cash after the operation.
Investigators found that Council Jr. conducted online searches related to the SEC hack and inquired about potential FBI investigations. The allegations against him claim that he used the identity of an authorized user to illegally enter the SEC’s account, therefore gaining control over their phone number.
Just one day following the false statement, the SEC formally authorized the opening of eleven Bitcoin ETFs, today managing around $63.5 billion in assets overall. The indictment of Council Jr. emphasizes the continuous efforts of the Criminal Division to fight cybercrime, especially in light of the potential compromise of financial markets.
