Hacker Imprisoned for Instigating $3,000 Bitcoin Fluctuation in SEC X's Account Hack
Headline: SIM Swap Hacker Sentenced for Manipulating Bitcoin Market, Undermining SEC Account
Subhead: The cyber attack on the U.S. Securities and Exchange Commission (SEC) highlights the power of social media in financial markets and the growing threat of SIM swap fraud in the crypto world.
A 26-year-old man from Athens, Alabama, Eric Council Jr., has been sentenced to 14 months in prison and forfeited $50,000 for his role in a cyber breach that targeted the U.S. Securities and Exchange Commission (SEC). The incident occurred in January 2024, and involved using a SIM swap to hijack the SEC's official X account. The hack led to the posting of a false announcement claiming that Bitcoin spot ETFs had been authorized, causing Bitcoin's price to soar over $1,000 in minutes before plummeting by $2,000 once the hoax was exposed.
U.S. Attorney Jeanine Pirro, Head of the Justice Department's Criminal Division Matthew R. Galeotti, SEC Inspector General Deborah Jeffrey, and FBI Assistant Director in Charge Steven J. Jensen of the Washington Field Office announced the sentence. U.S. prosecutors emphasized that Council's actions not only manipulated the market but also undermined trust in financial institutions. FBI officials warned that digital anonymity does not guarantee safety from law enforcement and vowed to continue cracking down on cybercrime rings targeting cryptocurrencies.
Investigations revealed that Council executed a sophisticated SIM swap attack to gain access to the SEC's mobile phone line. He pretended to be a customer at an AT&T store in Huntsville, Alabama, and tricked employees into handing him a new SIM card linked to the SEC's phone number. With the new SIM card, Council activated a newly purchased iPhone, received password reset codes for the @SECGov X account, and shared those codes with his co-conspirators. After profiting from the resulting volatility, authorities estimated that Council received roughly $50,000 for his role in the scheme.
This incident has intensified scrutiny of cybersecurity practices at top regulatory agencies like the SEC. Critics argue that the vulnerability exploited by Council – a SIM swap – is a known threat that should have been mitigated by stronger multi-factor authentication (MFA) and device-level security protocols. For crypto traders, it serves as a reminder that markets remain highly sensitive to information – real or fake – and that the pressure to secure communications channels is more urgent than ever as regulators prepare for broader ETF approvals and digital asset integration. As Bitcoin continues to hover in volatile territory, the risks of manipulation remain a pressing concern for institutional and retail investors alike.
(Enrichment Data: Eric D. Council Jr., orchestrated the attack by obtaining personal information of an SEC account manager and forging a fake ID. He used this to convince a mobile store employee to issue a replacement SIM card, thereby bypassing MFA on the SEC’s X account. Council’s method included physically purchasing a new iPhone at an Apple store using the stolen SIM card, activating it to receive password reset codes for the @SECgov X account, and sharing those codes with co-conspirators. The fraudulent ETF announcement caused turmoil in the market, with Council reportedly receiving $50,000 for his role in the scheme.)
- The sentencing of Eric Council Jr., a SIM swap hacker, underlines the danger of social media in financial markets and the escalating issue of SIM swap fraud in the crypto world.
- Council was found guilty of manipulating the Bitcoin market by impersonating an SEC account manager, tapping into the SEC's official X account through a SIM swap, and posting a false Bitcoin ETF authorization announcement.
- Realizing substantial profits due to the volatility in Bitcoin's price as a result, authorities assumed Council received approximately $50,000 from his manipulative scheme.
- The incident has amplified concerns over cybersecurity practices within top regulatory agencies like the SEC, with critics advocating for stronger multi-factor authentication (MFA) and device-level security protocols.
- As Bitcoin continues to fluctuate in a volatile manner, cybersecurity, crime-and-justice, and general-news outlets remain attentive to the risk of manipulation confronted by both institutional and retail investors.
- The technology behind cryptocurrencies exploits the anonymity benefit, but cybercriminals like Council demonstrate that safety from law enforcement is not guaranteed, with ongoing efforts targeting crypto swindlers by agencies like the FBI and the SEC.
