Eric Council Jr. has been charged with conspiracy to commit aggravated identity theft and access device fraud In January, the SEC’s X account was hacked with a post claiming that the agency had approved the first Bitcoin ETF A day later, the SEC approved the first Bitcoin ETFs A 25-year-old man from Athens, Alabama has […]The post FBI arrests Alabama man in connection with fake SEC Bitcoin ETF post appeared first on CoinJournal.

FBI arrests Alabama man in connection with fake SEC Bitcoin ETF post

  • Eric Council Jr. has been charged with conspiracy to commit aggravated identity theft and access device fraud
  • In January, the SECs X account was hacked with a post claiming that the agency had approved the first Bitcoin ETF
  • A day later, the SEC approved the first Bitcoin ETFs

A 25-year-old man from Athens, Alabama has been arrested by the FBI for allegedly hacking the US Securities and Exchange Commissions (SEC) X account.

According to an announcement from the US Attorneys Office, District of Columbia, Eric Council Jr. is accused of being part of a group that falsely posted a message on the SECs X account claiming they had approved the first Bitcoin exchange-traded fund (ETF).

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

In the name of Gary Gensler, the SECs Chair, the group posted a message on January 9 stating:

Today the SEC grants approval for #Bitcoin ETFs for listing on all registered national securities exchanges.

Shortly after the tweet was posted, the price of Bitcoin rose by $1,000.

Realizing the SEC account had been compromised, Gensler was quick to deny the news, saying that the agency hadnt approved the listing. Following that news, the price of Bitcoin dropped by $2,000.

Notably, a day later, the SEC approved the first Bitcoin ETF.

SIM swapping

Authorities state that Council used a SIM swapping technique to gain control of the SECs account.

Nicole Argentieri, Principal Deputy Assistant Attorney General of the Justice Departments Criminal Division, said that Council allegedly accessed the SECs account on X by using the stolen identity of a person who had access to the account to take over their cellphone number.

These SIM swapping schemes, where fraudsters trick service providers into giving them control of unsuspecting victims phones, can result in devastating financial losses to victims and leaks of sensitive personal and private information, said United States Attorney Matthew Graves.

According to the statement, Council, who also went by the names Ronin, Easymunny, and AGiantSchnauzer, is said to have received the victims name and photo and a template containing the victims details from co-conspirators. He then used this information to create a fake ID.

Council then traveled to Huntsville, Alabama to obtain a new SIM card linked to the victims phone and bought a new iPhone in cash. With the two, he obtained access codes to the SECs X account. These codes were shared with the co-conspirators who issued the fake tweet.

Council is said to have received payment in Bitcoin for completing the SIM swap. He then drove to Birmingham, Alabama to return the iPhone for cash. Conscious of his actions, the FBI said that Council conducted internet searches, including what are the signs that you are under investigation by law enforcement?

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