As a seasoned crypto investor with over two decades of experience under my belt, I’ve seen my fair share of market manipulations and scams. However, the audacity and sophistication of this SEC hack case are truly unprecedented. The fact that Eric Council Jr., using the alias “Ronin,” was able to manipulate financial markets by posting a fraudulent tweet about Bitcoin ETFs is nothing short of mind-boggling.
A 25-year-old resident of Athens, Alabama was apprehended by the Federal Bureau of Investigation (FBI), suspected for his role in a cyberattack on the U.S. Securities and Exchange Commission’s (SEC) official X account (previously Twitter) that occurred in January.
On October 17th, it was announced that Eric Council Jr. was taken into custody due to allegations of planning to carry out credit card fraud and severe identity theft.
Eric Council Jr. was charged for his role in a hacking incident involving the SEC’s account in January 2024. The group he allegedly belonged to falsely announced that the SEC had given approval for the first Bitcoin-based exchange-traded funds (ETFs). This deceptive announcement led to an increase of over $1,000 in Bitcoin’s value, causing substantial market turbulence.
Approximately fifteen minutes after the initial report, SEC Chairman Gary Gensler clarified that the report was inaccurate. He explained that the regulatory body’s account had been hacked, and he emphasized that the U.S. Securities and Exchange Commission had not authorized the listing and trading of spot bitcoin exchange-traded products.
As an analyst, I’d rephrase that as: By executing a “SIM swap” fraud, we managed to persuade a mobile service provider into transferring a target’s phone number onto our SIM card. This move enabled us to circumvent security protocols and post a fabricated tweet under the victim’s account.
American Prosecutor Matthew Graves emphasized the risks associated with SIM swap scams, a method in which crooks seize command over individuals’ mobile devices, resulting in substantial monetary losses and privacy violations due to unauthorized access to sensitive data.
He emphasized, “Here, the conspirators allegedly used their illegal access to a phone to manipulate financial markets. Through indictments like this, we will hold accountable those who commit these serious crimes.”
Apparent from reports, the council supposedly employed pseudonyms such as “Ronin”, “Easymunny”, and “AGiantSchnauzer” online. Additionally, they are said to have fabricated an identification card, gathering the necessary personal details from their accomplices.
He obtained a new iPhone and connected it to the victim’s phone service, giving him the ability to get into the SEC’s account and distribute the access passwords to his associates. In return for his part in the scheme, he was paid in Bitcoin by the Council.
During the course of the FBI probe, it appears that Eric Council Jr. looked up details related to the SEC hack, SIM swapping incidents, as well as indicators suggesting potential scrutiny by the FBI.
Officials claim that he illegally gained access to the SEC’s X account by impersonating an authorized person whose identity had been stolen, allowing them to manipulate the phone number. This action allowed him and his accomplices to share a misleading statement about the approval of Bitcoin ETFs, deceiving the public.
The probe was carried out by several organizations, such as the FBI’s Washington Division and the Office of Inspector General from the Securities and Exchange Commission (SEC).
After a deceptive tweet was exposed, the Securities and Exchange Commission (SEC) authorized 11 Bitcoin Exchange-Traded Funds (ETFs) the following day, these funds now overseeing assets worth more than $63.5 billion. The individual in question is set to make his first court appearance in the Northern District of Alabama today.
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2024-10-17 21:08