FBI Arrests Eric Council Jr. for SEC X Account Hack that Triggered Bitcoin Price Surge
On Thursday, FBI agents arrested 25-year-old Eric Council Jr. from Athens, Alabama, in connection with the January 9th hacking of the Securities and Exchange Commission’s (SEC) X account. According to the Department of Justice (DOJ), the hack caused Bitcoin’s price to spike by over $1,000 before a sharp $2,000 drop after the incident was resolved.
Council is accused of orchestrating a SIM swap attack, a method used to gain control of a phone number linked to the SEC’s X account. By accessing the account, Council allegedly shared its credentials with accomplices, who then posted a fraudulent tweet. The fake tweet falsely announced that the SEC had approved Bitcoin exchange-traded funds (ETFs), driving up Bitcoin's value. When the SEC clarified that the announcement was fake, the price of Bitcoin plummeted.
This hack occurred at a critical time, as the SEC was in the process of reviewing regulations surrounding Bitcoin ETFs. A day after the attack, the SEC officially approved changes, laying the groundwork for the introduction of these financial products in the U.S.
Council, known online by aliases such as "Ronin," "Easymunny," and "AGiantSchnauzer," allegedly received payments in Bitcoin for his involvement. After the attack, the DOJ reported that Council made several suspicious searches online, including queries about FBI investigations and Telegram SIM swaps.
Following his arrest, Council was denied bail and appeared before the U.S. District Court in Huntsville, Alabama. He faces serious charges, including conspiracy to commit aggravated identity theft and access device fraud. His case will be prosecuted in Washington, D.C., where the indictment originated. A detention hearing is set for Tuesday.
This high-profile case highlights increasing cybersecurity concerns targeting financial regulators and the potential risks to the cryptocurrency market. Cyberattacks like this emphasize the need for enhanced security measures, especially as cryptocurrency adoption grows.
