An Alabama man has pleaded guilty in connection with the January 2024 unauthorized takeover of the US Securities and Exchange Commission (SEC)’s social media account on X to artifically boost bitcoin prices.
According to court documents, Eric Council conspired with others who took unauthorized control of the SEC’s X account and falsely announced that the SEC approved BTC Exchange Traded Funds, a decision highly anticipated by the market. Immediately following the false announcement, the price of BTC increased by more than $1,000 per bitcoin.
On this occasion, the SEC was subject to a SIM-swap attack, whereby the hacker obtained control of the SEC cell phone number associated with the account and transferred it to another device, allowing them to reset the password and control the account.
As part of the scheme, Council used an identification card printer to create a fraudulent ID card with a victim’s personal information obtained from his co-conspirators. Council used the fraudulent identification card to impersonate the victim and gain access to his mobile phone number. Council’s co-conspirators then accessed the account and posted in the name of the SEC Chairman. Council received payment in bitcoin from his co-conspirators for his role.
Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. He is scheduled to be sentenced on May 16 and faces a maximum penalty of five years in prison.