Alabama man hacks Securities and Exchange Commission’s account, causing Bitcoin’s value to plummet

An Alabama man recently admitted to the 2024 hack of the U.S. Securities and Exchange Commission’s X account, leading to a sharp drop in the value of Bitcoin. Eric Council Jr., a 25-year-old resident of Athens, pleaded guilty to conspiracy to commit aggravated identity and access device fraud, with his sentencing scheduled for May and facing a potential five years in federal prison.

The breach of the SEC’s X account occurred on January 9, 2024. According to court records, Council was involved in the hack and subsequently visited AT&T and Apple stores in Huntsville and Birmingham as part of the fraudulent scheme. In the aftermath of the takeover, Council’s internet searches included inquiries such as “What are some signs the FBI is after you?”

The false announcement under the guise of then SEC Chairman Gary Gensler stated that the SEC had approved exchange-traded funds for buying and selling digital currency, a decision highly anticipated by the market. This misleading statement caused the price of Bitcoin to surge by over $1,000 per unit. However, the SEC quickly regained control of its X account and clarified that the announcement was false due to a security breach, leading to a significant decrease of more than $2,000 per Bitcoin.

The culprits, including Council, gained access to the SEC’s X account through an unauthorized SIM swap executed by Council. This fraudulent process involved persuading a cell phone carrier to transfer a phone number from a legitimate SIM card to one manipulated by a criminal, enabling unauthorized access to the victim’s account. Council utilized an identification card printer to produce a fake ID using personal data of an individual identified as “C.L.” acquired from accomplices.

On January 9, Council posed as an FBI employee at an AT&T store in Huntsville, citing a phone malfunction as a pretext to obtain a new SIM card. By impersonating “C.L.” with the forged identification, he acquired the victim’s phone number to access the SEC’s account. Subsequently, he purchased a new iPhone at an Apple store in Huntsville, installing the new SIM to receive security reset codes for the SEC’s X account. Council’s partners then entered the account and disseminated false information under the SEC chairman’s name.

After the fraudulent post was circulated, Council proceeded to Birmingham, returned the iPhone for cash, and destroyed the SIM card. Reports show that Council, known online as “Ronin,” “AGiantSchnauzer,” and “Easymunny,” received $50,000 for his participation in the cybercrime. Following the X breach, Council’s online searches included queries relating to FBI investigations, indicating his awareness of potential legal scrutiny.

The FBI Washington Field Office and SEC Office of Inspector General jointly investigated this case, shedding light on the sophisticated tactics employed by cybercriminals to manipulate digital platforms for financial gain.