eric council jr. He is charged with conspiracy to commit aggravated identity theft and access device fraud.
In January, the SEC's X account was hacked and a post was posted claiming that the SEC had approved the first Bitcoin ETF. The next day, the SEC approved the first Bitcoin ETF.
A 25-year-old man from Athens, Alabama, was arrested by the FBI on suspicion of hacking into the U.S. Securities and Exchange Commission's (SEC) X account.
According to a statement from the U.S. Attorney's Office for the District of Columbia, Eric Council Jr. is accused of being part of a group that falsely posted messages to the SEC's are. .
The council is charged with conspiracy to commit aggravated identity theft and access device fraud.
On January 9, the group posted the following message in the name of SEC Chairman Gary Gensler:
“Today, the SEC granted approval to list #Bitcoin ETFs on all registered national securities exchanges.”
Shortly after this tweet was posted, the price of Bitcoin increased by $1,000.
Gensler, who discovered his SEC account had been compromised, quickly denied the news, saying the SEC had not “approved the listing.” Following this news, the price of Bitcoin fell by $2,000.
@SECGov Twitter account was compromised and fraudulent tweets were posted. The SEC has not approved the listing and trading of spot Bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
Notably, the very next day, the SEC approved the first Bitcoin ETF.
SIM exchange
Authorities say the council used a “SIM swapping” technique to take control of the SEC's accounts.
Nicole Argentieri, principal deputy assistant attorney general in the Justice Department's Criminal Division, said the council “accessed X's SEC account using the stolen identity of a person who had access to the account to take over his cell phone number.” He said that it would be considered.
“These SIM swapping schemes, in which fraudsters trick service providers into giving them control of unsuspecting victims’ mobile phones, inflict devastating financial losses on victims and compromise sensitive personal information. “This could result in the disclosure of information and personal information,” said U.S. Attorney Matthew Graves.
According to the statement, the council, which also operated under the names “Ronin,” “Easymunny” and “AGiantSchnauzer,” allegedly received a template from the co-conspirators with the victim's name and photo, as well as the victim's details. There is. He then used this information to create a fake ID.
Council then traveled to Huntsville, Alabama, to obtain a new SIM card linked to the victim's cell phone and purchase a new iPhone for cash. Using these two, he obtained the access code to the SEC's X account. These codes were shared with co-conspirators who issued fake tweets.
The council is said to have received payment in Bitcoin to complete the SIM swap. He then drove to Birmingham, Alabama to return the iPhone and get cash. The FBI said that, aware of his actions, the council conducted internet searches such as “What are the signs that you are under investigation by law enforcement?”
