Bitcoin's price fluctuated wildly after SEC account hack.
Key Takeaways
- An Alabama man orchestrated a SIM swap to illegally access and manipulate the SEC's Twitter account.
- The fraudulent Bitcoin ETF approval tweet caused a rapid $1,000 increase and subsequent $2,000 decrease in Bitcoin prices.
The Federal Bureau of Investigation (FBI) today announced the arrest of Eric Council Jr., an Alabama man linked to a January 2024 unauthorized takeover of the US SEC’s X (formerly known as Twitter) account. The hack led to a false announcement about spot Bitcoin ETFs, causing major market disruption.
The FBI said that Council and his co-conspirators used a SIM swap attack to gain control of the SEC’s X account and posted a fraudulent message claiming the SEC had approved Bitcoin ETFs. The false announcement caused Bitcoin’s price to surge by $1,000, only to fall by over $2,000 after the SEC corrected the misinformation.
How did it happen?
According to the FBI, to execute the SIM swap scheme, Council and his co-conspirators obtained personal identifying information (PII) and an identification card template belonging to a victim. Using this information, Council created a fake ID and presented it to a cell phone provider store in Huntsville, Alabama. This allowed him to obtain a new SIM card linked to the victim’s phone number.
With the SIM card in hand, he purchased a new iPhone and used it to access the victim’s phone account. He then obtained the access codes necessary to log into the “@SECGov” account. Once he had control of the account, Council shared the access codes with his co-conspirators, who then posted the fraudulent message.
For his role in the hack, Council received payment in Bitcoin. After the attack, he drove to Birmingham, Alabama, to dispose of the iPhone he had used to access the SEC account.
Council then conducted internet searches for terms such as “SECGOV hack,” “telegram sim swap,” “how can I know for sure if I am being investigated by the FBI,” and “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them.”
Council faces charges of conspiracy to commit aggravated identity theft and access device fraud, with his initial court appearance scheduled for today in the Northern District of Alabama.
This is a developing story.