As a seasoned crypto investor with more than a decade of experience navigating the volatile digital asset market, the recent arrest of Eric Council Jr. serves as a stark reminder of the ongoing risks and challenges we all face in this rapidly evolving landscape. The SEC hack and subsequent false Bitcoin ETF announcement in 2024 was undoubtedly one of the most significant events that rattled our community.
In January 2024, Eric Council Jr., a resident of Alabama, was taken into custody by the US Department of Justice. The arrest stems from his alleged involvement in the high-profile hack of the X account at the United States Securities and Exchange Commission (SEC), where a misleading statement was published, wrongly suggesting that the SEC had given approval for Bitcoin exchange-traded funds (ETFs) to be listed.
Fraudulent Bitcoin ETF Announcement
The evidence presented shows that on January 9, 2024, the Council and their associates illegally seized control over the SEC’s X account. They published a statement saying, “Today, the SEC gives its approval for Bitcoin ETFs to be listed on all registered national securities exchanges.
The quick spread of a misleading statement led to an increase in Bitcoin’s value. However, when the SEC revealed that the post was due to a security breach, Bitcoin’s price dropped significantly, falling more than $2,000.
The unauthorized access was achieved through a method known as “SIM swapping,” where fraudsters trick telecommunications providers into transferring a victim’s phone number to the fraudster’s device.
Council’s Actions Following SEC Hack Exposed
Based on the findings of the investigation, it was discovered that the Council obtained personal details from his accomplices to fabricate a false ID. He then utilized this fake ID to carry out a SIM swap at a mobile service provider in Huntsville, Alabama. This action granted him access to the SEC’s X account, where he subsequently posted a misleading tweet.
After carrying out the hack, the council was compensated with Bitcoin for his involvement in the SIM swap. Post this event, he traveled to Birmingham, Alabama, to exchange the iPhone involved in the scam for cold, hard cash.
Following online investigations conducted by the Council, they also looked into details about the SEC hack, strategies for SIM swapping, and possible indicators of an ongoing FBI probe. This suggests that they were aware of the potential legal consequences of their actions.
Council was taken into custody early Thursday morning and is set to make an initial court appearance in the Northern District of Alabama. He faces charges of conspiracy to commit aggravated identity theft and access device fraud, according to the indictment unsealed today.
At the time of writing, Bitcoin was trading at $67,500.
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2024-10-17 19:26