Alabama Man Arrested in Shocking SEC Social Media Hack That Sent Bitcoin Prices Soaring

An Alabama man was arrested on Thursday for his alleged involvement in the January hack of a U.S. Securities and Exchange Commission (SEC) social media account, which briefly caused a surge in bitcoin’s price, according to the Justice Department.

Eric Council Jr., 25, from Athens, is accused of participating in the breach of the SEC’s account on X (formerly Twitter). The hackers used this access to falsely announce the approval of long-awaited bitcoin exchange-traded funds (ETFs), causing bitcoin’s price to spike by over $1,000.

The fraudulent post read: “The SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.” This led to a sharp, albeit temporary, increase in bitcoin’s value.

However, soon after the post appeared, SEC Chairman Gary Gensler confirmed on his personal X account that the SEC’s account had been compromised. He clarified that “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products,” calling the post unauthorized."

Authorities allege that Council carried out a “SIM swap” attack, where he used a fake ID to impersonate someone with access to the SEC’s X account. By convincing a cellphone store to issue him a SIM card linked to that person’s phone, Council was able to hijack their phone number and obtain access codes to the SEC’s account. He then shared these credentials with others, who posted the false information.

After returning the iPhone used in the SIM swap, prosecutors revealed that Council's internet searches include searches like "What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them."

Temporary price surge following hack

Council has been charged in federal court in Washington with conspiracy to commit aggravated identity theft and access device fraud.

The price of bitcoin surged from approximately $46,730 to just under $48,000 following the fake post on January 9, before falling back to around $45,200 after the SEC issued a denial. The SEC has since approved the first ETFs holding bitcoin.