An Alabama man pleaded guilty Monday in connection with the January 2024 unauthorised takeover of the U.S. Securities and Exchange Commission’s social media account on X, formerly known as Twitter, in which hackers posted a fraudulent message in the name of the then-SEC Chairman, temporarily causing the value of Bitcoin to increase by more than $1,000.
According to court documents, Eric Council Jr., 25, of Athens, conspired with others who took unauthorized control of the SEC’s X account and falsely announced that the SEC approved BTC Exchange Traded Funds, a decision highly anticipated by the market.
Immediately following the false announcement, the price of BTC increased by more than $1,000 per bitcoin.
Shortly after this unauthorized post, the SEC regained control over its X account and confirmed that the announcement was false and the result of a security breach. Following the correction, the value of BTC decreased by more than $2,000 per bitcoin.
The conspirators gained control of the SEC’s X account through an unauthorized Subscriber Identity Module (SIM) swap carried out by Council. A SIM swap refers to the process of fraudulently inducing a cell phone carrier to reassign a cell phone number from the legitimate subscriber or user’s SIM card to a SIM card controlled by a criminal actor.
As part of the scheme, Council used an identification card printer to create a fraudulent identification card with a victim’s personally identifiable information obtained from his co-conspirators.
Council used the fraudulent identification card to impersonate the victim and gain access to the victim’s cellular phone number for the purpose of accessing the SEC’s account. Council’s co-conspirators then accessed the account and posted in the name of the SEC Chairman. Council received payment in bitcoin from his co-conspirators for his role.
Pursuant to the search warrant, agents searched the laptop and discovered templates for additional fake identification cards stored on the laptop along with internet searches for “SECGOV hack,” “telegram sim swap,” “how can I know for sure if I am being investigated by the FBI,” “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them,” “what are some signs that the FBI is after you,” “Verizon store list,” “federal identity theft statute,” and “how long does it take to delete telegram account.”
Council admitted to receiving approximately $50,000 from members of the conspiracy to perform SIM swap during the previous six months. Council’s plea was entered before U.S. District Court Judge Amy Berman Jackson in the District of Columbia.
He faces a maximum sentence of five years in prison, a $250,000 fine, and up to three years of supervised release. His sentencing is scheduled for May 16, 2025.
Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
