Janice R. Andrews
Federal authorities have taken a 25-year-old Alabamian, Eric Council Jr., into custody for his alleged role in compromising the Securities and Exchange Commission’s X platform account. The incident, which occurred earlier this year, involved a fraudulent post about Bitcoin ETF approvals that temporarily affected cryptocurrency markets.
Prosecutors have filed charges against Council for conspiracy-related offenses, including aggravated identity theft and access device fraud. Investigators say the perpetrators employed a SIM swapping technique, which involves redirecting a target’s phone service to gain unauthorized access to their accounts.
The criminal complaint describes how Council allegedly collaborated with others through encrypted communications to execute the breach. The group reportedly targeted an SEC account administrator identified as “C.L.,” creating counterfeit identification and activating a new SIM card to hijack the account’s credentials. This manipulation enabled them to post the misleading ETF announcement.
The false post, appearing shortly before the SEC’s legitimate ETF approvals, triggered a brief $1,000 surge in Bitcoin’s value. The incident highlighted vulnerabilities in the SEC’s account security protocols, particularly the absence of robust authentication measures.
Digital evidence recovered from Council’s computer revealed telling search queries, including “SECGOV hack” and research into FBI investigation procedures. SEC Inspector General Jeffrey emphasized that this enforcement action demonstrates their commitment to market integrity.
The case serves as a cautionary example of the severe consequences facing those who attempt to manipulate financial markets through cyber attacks. Both regulatory and law enforcement agencies maintain their vigilance against such digital threats.
