Man admits guilt in hacking SEC’s X account, falsely approving bitcoin ETFs – NECN
An Alabama resident, Eric Council Jr., has admitted to being involved in a hack of the U.S. Securities and Exchange Commission’s X account in January 2024. This hack falsely claimed that bitcoin exchange-traded funds had been approved by the SEC. Council pleaded guilty in federal court in Washington, D.C., for his role in conspiring with others to gain control of the X account.
Council, a 25-year-old from Athens, was arrested in October of last year, over ten months after the initial hack took place. He pleaded guilty to conspiracy charges related to aggravated identity theft and access device fraud. When sentenced on May 16, he faces a potential maximum prison term of five years.
As part of his guilty plea, Council agreed to forfeit $50,000 to the government. Under aliases like “Ronin,” “Easymunny,” and “AGiantSchnauzer,” Council received payment in bitcoin from his co-conspirators. Prosecutors detailed a SIM swap attack carried out by Council, where he created a fraudulent identification card to gain access to the cellphone number linked to the SEC’s X account.
Using this fraudulent identification, Council impersonated the victim and accessed the SEC’s account, allowing his co-conspirators to post on behalf of the SEC Chairman. The hackers sent a tweet following the breach, causing the price of bitcoin to jump over $1,000, only for the SEC to quickly announce the tweet as false, leading to a steep drop in bitcoin’s value.
The hack coincided with the SEC’s discussions on approving ETFs that include cryptocurrency. The day after the breach, rule changes were implemented to allow for the creation of bitcoin ETFs. This event underscored the impact of cyber crimes on financial markets, prompting regulatory bodies to enhance security measures to protect against future breaches. The case against Council serves as a cautionary tale of the risks associated with unauthorized access to financial systems and the potential consequences for those who engage in such criminal activities.
