On Thursday, the FBI announced the arrest of Eric Council Jr., a 25-year-old from Athens, Alabama, in connection with the January 2024 hack of the U.S. Securities and Exchange Commission’s (SEC) X account. The hack involved a fraudulent post falsely announcing the approval of Bitcoin exchange-traded funds (ETFs), which briefly caused the price of Bitcoin to spike by more than $1,000.

According to the FBI and the Department of Justice (DOJ), Council executed a SIM swap attack to take control of a phone number associated with the SEC’s X account. Once he gained access, he allegedly handed over the account credentials to unnamed co-conspirators. The fake post from the SEC’s account on January 9 stated, "Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges." This misleading announcement caused Bitcoin’s price to jump by $1,000 in a short period, followed by a sharp drop of $2,000 once the SEC regained control of the account and confirmed the tweet was false.

Council was reportedly compensated in Bitcoin for his role in the hack. The false announcement came at a time when the SEC was actively considering the approval of Bitcoin ETFs, further fueling market speculation. The day following the hack, the SEC did approve rule changes that permitted the creation of Bitcoin ETFs in the U.S.

Court documents revealed that Council conducted several internet searches after the hack, including terms such as "SECGOV hack," "how can I know for sure if I am being investigated by the FBI," and "signs that you are under investigation." These searches were used as evidence in the FBI’s investigation.

Council faces charges of conspiracy to commit aggravated identity theft and access device fraud. He is expected to appear in U.S. District Court for the Northern District of Alabama. If convicted, Council could face significant penalties.

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