Alabama Man Charged with Hacking SEC Social Media, Causing Bitcoin Price Surge

Alabama Man Arrested for SEC Social Media Hack Affecting Bitcoin Prices

In an indictment announced by the Justice Department, Eric Council Jr., a 25-year-old from Athens, Alabama, faces charges for allegedly participating in a January hack of the U.S. Securities and Exchange Commission (SEC) social media account, which led to a significant spike in bitcoin prices. Council is accused of assisting in the unauthorized access to the SEC's account on X (formerly Twitter) that falsely proclaimed the approval of bitcoin exchange-traded funds.

The fraudulent announcement caused bitcoin's price to surge over $1,000, escalating from approximately $46,730 to nearly $48,000 following the post that claimed, “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” However, SEC Chairman Gary Gensler quickly debunked the claim, clarifying that the SEC had not authorized any such listings.

According to prosecutors, Council executed a “SIM swap” by using a fake ID to impersonate an individual with access to the SEC's account, persuading a cellphone retailer to issue a SIM card linked to that person's phone number. This breach granted him access to the SEC's account, permitting the unauthorized post. Subsequently, Council's online activities suggested awareness of a potential investigation, with searches about signs of being under scrutiny by law enforcement.

Council now faces charges in federal court in Washington for conspiracy to commit aggravated identity theft and access device fraud. Following the breach, the bitcoin price stabilized around $45,200 after the SEC's denial of the announcement, though the agency would officially approve bitcoin exchange-traded funds the day after the incident.