FBI Arrests Alabama Man In Connection With Fake SEC Bitcoin ETF Post

Eric Council Jr He was charged with felony identity theft and instrument fraud
In January, the SEC's X designation was hacked with a post announcing the agency's approval of the first Bitcoin ETF, a day after the SEC approved the first Bitcoin ETFs.

A 25-year-old man from Athens, Alabama was arrested by the FBI on charges of violating the US Securities and Exchange Commission's X Account.

According to a notice from the US Attorney's Office, District of Columbia, Eric Council Jr. is accused of being part of a group that falsely posted messages on the SEC X account claiming to have approved the first Bitcoin exchange-traded fund (ETF). .

The council has been charged with felony identity theft and equipment fraud.

On behalf of SEC Chairman Gary Gensler, the group released the following message on January 9:

“Today the SEC authorized #Bitcoin ETFs to list on all registered national securities exchanges.”

Shortly after the tweet was posted, the price of Bitcoin increased by $1,000.

When the SEC learned that its account had been breached, the agency was quick to deny the news, saying it had “not approved the details.” Bitcoin price dropped by $2,000 following that news.

The @SECGov Twitter account was hacked, and an unauthorized tweet was posted. The SEC has not approved the listing and marketing of spot bitcoin trading products.

— Gary Gensler (@GaryGensler) January 9, 2024

Notably, just one day later, the SEC approved the first Bitcoin ETF.

SIM exchange

Officials said the council used the “SIM swapping” method to manipulate the SEC account.

Nicole Argentieri, chief deputy assistant attorney general of the Justice Department's criminal division, said the council “accessed the SEC account on X by using the stolen identity of the person who entered the account to take their cell phone number.”

U.S. Attorney Matthew Graves said, “These SIM-swapping schemes allow fraudsters to trick service providers into taking control of unsuspecting victims' phones, which can result in significant financial losses for victims and sensitive personal and private information.”

According to the statement, Council, also known as “Ronin”, “Easymunny” and “AgiantSchnauzer”, allegedly received a template from the conspirators containing the victim's name and photo, as well as the victim's details. He then used this information to create a fake ID.

Council traveled to Huntsville, Alabama to obtain a new SIM card connected to the victim's phone and purchased a new iPhone with cash. Along with the two, he obtained access codes to the SEC's X account. These codes were shared with the collaborators who posted the fake tweet.

Council is said to have received payment in Bitcoin to complete the SIM swap. He then drove to Birmingham, Alabama to return the iPhone for cash. “What are the signs that you are being investigated by law enforcement?” the FBI learned of the incident. He said that he has conducted internet searches including