A significant cybercrime event has culminated in legal action following the hacking of the Securities and Exchange Commission’s (SEC) X account on the same day an ETF was approved. This malicious breach resulted in substantial financial losses for many, leading to the arrest of Eric Council on October 17. Today, Council accepted a guilty plea in a Washington D.C. courtroom.
What Happened During the Hack?
On October 17, 2024, Eric Council confessed to charges of conspiracy related to aggravated identity theft. This was confirmed by U.S. Attorney Edward R. Martin, Jr., alongside officials from various law enforcement agencies including the SEC and the FBI.
How Are SIM Swap Attacks Conducted?
SIM swap attacks provide an accessible means to compromise online accounts. Council and his co-conspirators executed their plan by hijacking the SEC’s official @SECgov account on January 9, 2024. Details of their scheme were disclosed by the Justice Department.
- Council fabricated a false identity using a portable ID card printer.
- He misled an AT&T employee to obtain the victim’s SIM card.
- This enabled him to reset the @SECGov account password, resulting in false announcements regarding Bitcoin ETF approvals.
- The misleading information significantly impacted Bitcoin’s market price, leading to drastic fluctuations.
Facing serious repercussions, Council could be sentenced to five years in prison, along with three years of supervised release and a $250,000 fine, with sentencing set for May 16, 2025.
