FBI arrests Alabama man in reference to pretend SEC Bitcoin ETF publish

• Eric Council Jr. has been charged with conspiracy to commit aggravated id theft and entry machine fraud
• In January, the SEC’s X account was hacked with a publish claiming that the company had authorized the primary Bitcoin ETF
• A day later, the SEC authorized the primary Bitcoin ETFs

A 25-year-old man from Athens, Alabama has been arrested by the FBI for allegedly hacking the US Securities and Trade Fee’s (SEC) X account.

In line with an announcement from the US Legal professional’s Workplace, District of Columbia, Eric Council Jr. is accused of being a part of a bunch that falsely posted a message on the SEC’s X account claiming that they had authorized the primary Bitcoin exchange-traded fund (ETF).

Council has been charged with conspiracy to commit aggravated id theft and entry machine fraud.

Within the title of Gary Gensler, the SEC’s Chair, the group posted a message on January 9 stating:

“As we speak the SEC grants approval for #Bitcoin ETFs for itemizing on all registered nationwide securities exchanges.”

Shortly after the tweet was posted, the value of Bitcoin rose by $1,000.

Realizing the SEC account had been compromised, Gensler was fast to disclaim the information, saying that the company hadn’t “authorized the itemizing.” Following that information, the value of Bitcoin dropped by $2,000.

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not authorized the itemizing and buying and selling of spot bitcoin exchange-traded merchandise.

— Gary Gensler (@GaryGensler) January 9, 2024

Notably, a day later, the SEC authorized the primary Bitcoin ETF.

SIM swapping

Authorities state that Council used a “SIM swapping” approach to achieve management of the SEC’s account.

Nicole Argentieri, Principal Deputy Assistant Legal professional Normal of the Justice Division’s Legal Division, stated that Council allegedly “accessed the SEC’s account on X by utilizing the stolen id of an individual who had entry to the account to take over their cellphone quantity.”

“These SIM swapping schemes, the place fraudsters trick service suppliers into giving them management of unsuspecting victims’ telephones, can lead to devastating monetary losses to victims and leaks of delicate private and personal data,” stated United States Legal professional Matthew Graves.

In line with the assertion, Council, who additionally glided by the names “Ronin,” “Easymunny,” and “AGiantSchnauzer,” is claimed to have acquired the sufferer’s title and photograph and a template containing the sufferer’s particulars from co-conspirators. He then used this data to create a pretend ID.

Council then traveled to Huntsville, Alabama to acquire a brand new SIM card linked to the sufferer’s cellphone and acquired a brand new iPhone in money. With the 2, he obtained entry codes to the SEC’s X account. These codes have been shared with the co-conspirators who issued the pretend tweet.

Council is claimed to have acquired fee in Bitcoin for finishing the SIM swap. He then drove to Birmingham, Alabama to return the iPhone for money. Aware of his actions, the FBI stated that Council carried out web searches, together with “what are the indicators that you’re below investigation by regulation enforcement?”