The person behind the bold SIM swap attack that led to the takeover of the U.S. Securities and Exchange Commission’s X account has been arrested. The investigation has uncovered a conspiracy that shot Bitcoin (BTC) prices higher within minutes.
Eric Council Jr., 25, was apprehended in Athens, Alabama, early today in connection with the January 2024 scheme to manipulate the price of Bitcoin. Council, charged with conspiracy to commit identity theft and access device fraud, allegedly led an unauthorized takeover of the SEC’s account on X (formerly known as Twitter), posting a fabricated message that sent BTC prices soaring by $1,000.
Personal Info and Fake ID Engineered SEC SIM Swap
The incident unfolded on January 9, when hackers, using a SIM swap attack, gained access to the SEC’s account and falsely announced the approval of Bitcoin exchange-traded funds (ETFs) on all registered exchanges. The post triggered a surge in Bitcoin’s price before a swift SEC correction caused it to drop by over $2,000.
The indictment alleges that Council used stolen personal information and a fake ID to execute the SIM swap, obtaining control over a phone number linked to an individual with access to the SEC’s account. SIM swap attacks exploit vulnerabilities in how mobile carriers reassign phone numbers, often deceiving them into switching numbers to a criminal’s SIM card to bypass security measures like two-factor authentication.
After purchasing an iPhone using the fraudulent SIM, Council gained the necessary access codes and collaborated with co-conspirators to issue the fake ETF approval announcement. Following the breach, Council allegedly returned the iPhone for cash in Birmingham and searched the internet for terms such as “SECGOV hack” and “how to know if you are under FBI investigation.
Aliases and Activities Led to Arrest
Authorities identified Council’s involvement through his online aliases, including “Ronin,” “Easymunny,” and “AGiantSchnauzer.” These clues, combined with his activities during the attack, drew the FBI’s attention.
U.S. Attorney Matthew Graves highlighted the seriousness of SIM swapping, emphasizing the FBI’s efforts to tackle cyber-enabled frauds that compromise sensitive data and disrupt financial markets.
Council’s arrest underscores the growing threat posed by sophisticated digital schemes targeting high-profile organizations. The Justice Department, FBI, and SEC’s Inspector General’s office collaborated in the investigation, with substantial support from the FBI’s Birmingham Field Office.
Mihir Bagwe
Bagwe has nearly half a decade of experience in reporting on the latest cybersecurity news and trends, and interviewing cybersecurity subject matter experts. He has previously worked with ISMG and CISO MAG, publications focussed on addressing the cybersecurity needs of the C-Suite, particularly the CISO and CIO communities.