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3mo ago

Alabama Man Pleads Guilty to SEC X Account Hack That Manipulated Bitcoin Prices

Eric Council Jr. admitted to a SIM-swapping scheme that compromised the SEC's social media account, posting false Bitcoin ETF approval claims.

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The headquarters building of the U.S. Securities and Exchange Commission (SEC) stands in Washington, D.C., U.S., on Monday, May 10, 2010. The chief executive officers of the biggest U.S. stock markets were called to a meeting at the SEC today to discuss last week�s selloff in equities, according to four people familiar with the situation. Photographer: Joshua Roberts/Bloomberg via Getty Images
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Overview

  • Eric Council Jr., 25, pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud in connection with the January 2024 hack of the SEC's X account.
  • The hack involved a SIM-swapping attack that allowed Council to gain control of the SEC's social media account and post a fraudulent Bitcoin ETF approval announcement.
  • The false announcement temporarily caused Bitcoin prices to surge by $1,000 before plummeting $2,000 after the SEC clarified the post was fake.
  • Council created a fake ID using stolen personal information to impersonate a victim and gain access to a phone number linked to the SEC's account.
  • Council, who received $50,000 in Bitcoin for his role, faces a maximum sentence of five years in prison, with sentencing scheduled for May 16.