As a seasoned analyst with over two decades of experience in cybercrime investigations, I have seen my fair share of creative and audacious schemes. However, the case of Eric Council Jr., the Alabama-based hacker who pulled off a SIM swap attack on the SEC’s X account to manipulate Bitcoin’s market value, is one for the books.
In relation to the hack that occurred on the U.S. Securities and Exchange Commission’s X account in January 2024, Eric Council Jr., a resident of Athens, Alabama, aged 25, was apprehended.
The council’s deceptive action gave a misleading impression that the Securities and Exchange Commission (SEC) had endorsed Bitcoin exchange-traded funds, which caused an abrupt increase in the price of Bitcoin (BTC).
The council is facing accusations for conspiring to carry out aggravated identity theft and fraud involving access devices. Their initial court appearance will take place in the Northern District of Alabama.
From SIM swap to market manipulation
As a crypto investor, I’ve learned that the authorities have accused someone named Council and his associates of masterminding a “SIM swap” scheme to illegally seize control over an SEC account labeled as ‘X’.
On January 9, 2024, someone shared a misleading statement pretending to be from the SEC Chair, claiming Bitcoin ETFs were now eligible for trading on stock markets. This deception led to an increase in Bitcoin’s value by approximately $1,000.
SEC ACCOUNT WAS HACKED
— Bitcoin Archive (@BTC_Archive) January 9, 2024
Following the SEC’s repossession of the account and verifying the message as a hoax, the price of Bitcoin plummeted approximately $2,000.
Swapping SIM cards fraudulently is a form of cybercrime where criminals deceive mobile network providers into moving a target’s phone number onto a SIM card that the offenders have control over. This gives them the ability to get around protective measures such as two-factor authentication.
It is claimed that the Council acquired a fraudulent ID to get a SIM card connected to the victim’s phone, which they subsequently utilized to seize control of the SEC’s X account using this access.
Is the FBI investigating me?
The indictment states that the suspect went by various online aliases such as “Ronin,” “Easymunny,” and “AGiantSchnauzer.” They allegedly acquired private details like photos, names, and personal information of a victim from their accomplices.
With this data, the Council fabricated a false ID using an ID card machine. Subsequently, he utilized this phony ID to acquire a SIM card connected to the victim’s phone service at a mobile store located in Huntsville, Alabama.
Finally, we have the revelation about who was responsible for hacking the SEC’s X account before the Bitcoin ETF approval:
A 25-year-old individual from Alabama, known online as “AGiantSchnauzer” and “Easymunny”.
— Leo Schwartz (@leomschwartz) October 17, 2024
Using a recently bought iPhone and a SIM card, the council managed to retrieve access codes for the SECgov X account and subsequently passed these codes on to their accomplices.
They used the codes to issue a fraudulent tweet on the @SECGov X account in the name of the SEC Chairman, falsely announcing the SEC’s approval of BTC ETFs.
As reported by the FBI, the council accepted a Bitcoin transaction as payment for a successful SIM swap incident, and subsequently exchanged the iPhone for cash in Birmingham, Alabama.
Following these events, the Council delved into online resources using phrases like “SECGOV hack”, “Telegram SIM swap”, “How can I verify if I am being investigated by the FBI”, and “What indicators suggest an investigation by law enforcement or the FBI, even if they haven’t reached out to me directly.
idk if the SIM swapper is more low iq for these internet searches or the SEC for not using 2FA
— ZachXBT (@zachxbt) October 17, 2024
FBI warns of SIM swapping
U.S. Attorney Graves emphasized the serious implications of SIM swapping schemes, which can lead to significant financial losses. “Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets,” he said.
The Deputy Assistant Attorney General, Argentieri, emphasized that the Council and his associates manipulated their access to artificially inflate Bitcoin’s value, emphasizing the Justice Department’s dedication to pursuing cybercrimes which jeopardize market honesty.
In simpler terms, the FBI’s temporary head of special agents, Geist, mentioned that SIM swapping is still being misused by hackers to manipulate financial systems. He emphasized that the FBI remains committed to collaborating with other law enforcement agencies in bringing to justice anyone who violates U.S. laws.
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2024-10-17 19:38